Ukraine legalizes virtual assets: this is what the new law says
If you’re a regular CoinGeek reader, you’ve already spotted a trend; the world is rapidly moving towards legalizing and regulating every facet of what you might call the virtual asset industry.
All over the world we are seeing crackdowns from governments that are fed up with schemes and scams in outer space. We’re also seeing forward-thinking governments embracing the legal and useful aspects of the industry and the legitimate blockchain technology that started it all.
This month Ukraine became the latest country to legalize and regulate virtual assets. Let’s take a closer look at what the new law says and what it means.
The law on virtual assets in Ukraine: what it says
- On September 8, the Ukrainian parliament officially adopted Law No. 3637 on virtual assets.
- It defines a âvirtual assetâ as an intangible good that is an object of civil rights, has value and is expressed as a set of data in electronic form. This definition covers digital coins, NFTs and everything in between.
- However, it also makes it clear that virtual assets are not a means of payment and cannot be exchanged for goods, goods or services.
- The new law aims specifically to regulate virtual assets in Ukraine. It also describes the rights and obligations of âparticipants in the virtual asset marketâ. These include exchanges, depositories, etc.
- It makes virtual assets legal in Ukraine, but within a regulatory framework that will eliminate crime and attract international investment.
- The law grants powers to some institutions in the country, including the National Bank of Ukraine, the Ministry of Digital Transformation, and a new authority is to be established.
- It also makes it compulsory to have a license to operate âvirtual asset servicesâ such as stock exchanges, custodial services, transfer services, intermediaries, etc.
Most interesting of all, however, is what the law says about owners of virtual assets. According to her, someone owns it unless:
- The key to the virtual asset or virtual asset is stored by a third party in accordance with the terms of the transaction between the custodian and the owner of that virtual asset.
- The virtual asset is transferred for safekeeping to any person in accordance with the law or a court decision which entered into force.
- The key to virtual assets was acquired by a person illegally.
Here we can clearly see what Dr. Craig Wright has always said, and his reason for wanting to prove his identity as Satoshi Nakamoto in court before publicly signing with Satoshi’s keys; possession of the keys does not prove identity or ownership. Only the law does this.
If variations of this Ukrainian law become the norm, owners will have legal recourse to recover stolen virtual assets, and those who steal them will have no legal status to claim ownership. In other words, the code is not a law and the courts will decide who owns what.
The days of the Wild West are almost over, and that’s a good thing
The sentiment of the new Ukrainian law on virtual assets can be heard all over the world. In the United States, SEC Chairman Gary Gensler recently told the United States Senate that the days of the digital currency industry’s “Wild West” are over and regulators have a plan to make it work. industry under existing and new laws and regulations.
With the big banks banning Binance, the DOJ’s investigations into Tether and other dishonest operators in space, and the legal precedents set by Dr Wright and others, proving that intellectual property rights have always of importance and that the property must be legally established. , the days of theft, fraud and crime in industry are almost over.
As more countries write and enact laws similar to Ukraine’s, and legal precedents are set in the COPA case against Wright and others, the days when the Silk Road and the Mount Gox represented Bitcoin will fade into memory, and a new era of big business, massive scale-up, and enterprise solutions to real-world problems will come to the fore.
As this happens, serious market players will put aside the views of anarchists and ideologues and realize that there is only one blockchain with the technical chops to meet their needs. ; the original Bitcoin protocol, the corporate Bitcoin blockchain.
See also: CoinGeek Zurich Panel, Blockchain Law & Policy
New to Bitcoin? Discover CoinGeek Bitcoin for beginners section, the ultimate resource guide to learning more about Bitcoin – as originally envisioned by Satoshi Nakamoto – and blockchain.