The legislation applicable to virtual assets in Ukraine is already being amended in order to ensure that it is in accordance with European standards.

A number of government institutions in Kyiv have geared up to make the necessary changes to the legislation ‘On Virtual Assets’, which had been signed into law this year.

Crypto regulation to be amended

The Markets in Crypto Assets (MiCA) is the legislative package that was introduced by the European Union and will be applicable to all countries in the bloc.

Therefore, amendments will have to be made to the provisions that are outlined in ‘On Virtual Assets’, which is the primary piece of legislation that governs cryptocurrencies in Ukraine.

The East European nation of Ukraine is not yet an EU member had been granted the status of a candidate for membership.

The Ministry of Digital Transformation of Ukraine explained that this was the reason why they would have to adapt their national legislation according to European standards.

The Ukrainian parliament had first adopted the law last year, but it had been returned with some recommendations from President Volodymyr Zelensky.

The bill had been passed this year in February by the Verkhovna Rada and in March, the Ukrainian president had signed it into law.

Significant changes

According to reports, significant changes may have to be made to Ukraine’s virtual assets legislation.

The amendments to the law will be made by representatives of the crypto industry, the National Bank of Ukraine (NBU), and the National Securities and Stock Market Commission (NSSMC).

The digital ministry stated that the classification of virtual assets that have been adopted in the country could also be affected by the revisions.

Moreover, it said that they would also review the terms that had been outlined for initial VA offerings in the country.

The new version

It is expected that the amended version of the law ‘On Virtual Assets’ would be filed by the end of this year.

According to the NSSMC, it is necessary to make the update because they also need to come up with rules for crypto taxation, which they will introduce in a different bill.

Ukraine’s Tax Code would also have to be amended and this would be done before the VA legislation is put into effect in the country.

The efforts of the Ukrainian government for regulating cryptocurrencies come after the nation became a leader in terms of adoption in the region.

Chainalysis, the blockchain analysis firm, disclosed that Ukraine is the third country in the most recent list of global crypto adoption.

As far as Ukraine’s status as a candidate for membership in the European Union is concerned, this had been granted to the country back in June.

The MiCA legislation package for crypto had been approved for the entire bloc in early July and all key participants in the complicated legislative process in the EU had given their approval.

These included the European Commission, the European Council as well as the Parliament.