Ukrainian regulators have stated publicly that they plan to adopt the European Union’s Markets in Crypto-Assets (MiCA) regulation.
According to cointelegraph.com, the Deputy Chairman of the Tax Committee of Ukraine, Yaroslav Zheleznyak, revealed via Telegram that Ukraine-based regulators are working on implementing some provisions of MiCA to make crypto assets legal in Ukraine. He also revealed that regulators are working with colleagues from the National Commission for Securities and the Stock Market (NKCPFR), whose representatives expressed their belief that Ukraine will be one of the first countries to integrate the new EU regulations into national legislation.
Ukraine’s willingness to adopt EU regulations comes in the context of it receiving candidate status to the EU in June 2022. According to officials from the European Council cited by cointelegraph.com, European regulators have acknowledged the efforts that Ukraine has performed towards meeting the objectives underpinning its candidate status for EU membership.
MiCA represents the effort of European policymakers to introduce standardised regulations and create unique rules for crypto assets across the European Union. At the time of writing, crypto businesses need to adhere to 27 distinct regulatory frameworks across EU member countries.
Under MiCA, crypto companies such as wallets and exchanges will receive an operating licence if they meet certain governance and consumer protection norms. The legislation also introduces reserve requirements for stablecoins. Upon approval, the law will be published in the EU’s official journal and will take effect between one and three years after that.
Cryptocurrency adoption in Ukraine
According to Triple-A, Ukraine ranks third in Chainalysis’s Global Crypto Index for 2022. This means that it climbed up a spot when compared to 2021. Russia’s invasion of the country in early 2022 forced the Ukranian government to adapt and prepare systems that could receive donations and help in any form.
Triple-A reports that cryptocurrency has helped the Ukrainian war effort against Russia and that Ukraine is one of the first countries in the world to fully pass a legal framework for cryptocurrency. This legal framework was created as the Ukrainian government realised that crypto donation was a quick and easy way to handle the flow of international donations that were coming their way. For instance, In February 2022, Binance has committed USD 10 million minimum to help the humanitarian crisis in Ukraine through its Binance Charity Foundation.
Triple-A estimates that around 6.5 million Ukrainians own cryptocurrency, which would amount to around 15.72% of the country’s total population.
