New Bill in Ukraine to Finally Let Crypto Firms Open Bank Accounts

Saturday 23 May 2020, 6:59 AM AEST - 4 months ago

Ukraine is getting closer to providing a legal status for cryptocurrencies like Bitcoin (BTC) with a new draft bill published on Monday.

On May 18, the Ministry of Digital Transformation of Ukraine published a new draft bill On Virtual Assets that aims to determine the legal status of crypto assets, rule of their circulation and issuance in the country. The current version of the bill is not final and is open for discussion by the crypto community until June 5, 2020.

Crypto industry in Ukraine is still in grey zone

According to one of the co-authors of the new draft bill, the main purpose of the initiative is to finally enable local crypto firms like exchanges to open bank accounts. Michael Chobanian, the president of the Bitcoin Association Ukraine, an organization that co-authored the new bill alongside state authorities, law firms and industry players, says that crypto exchanges are still unable to set up a bank account in Ukraine to date.

As such, the proposed draft bill is designed to move the crypto industry out of the grey zone and finally bring legal presence to companies in Ukraine. According to the bill, virtual asset service providers — crypto exchanges, issuers and users — have the right to open accounts in banking and other financial institutions.

Only registered crypto firms are going to be legal

Unlocking sufficient benefits for the crypto industry in Ukraine has its costs tho ...

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