Ukraine urged to finalize crypto regulation update by end of 2024, official states

The International Monetary Fund (IMF) has advised Ukraine to expedite the process of updating its legislation on virtual assets by the end of 2024. This recommendation came as a result of regulatory concerns and the economic potential of the virtual asset sector, according to a statement by Oleksandr Bornyakov, a deputy minister of digital transformation of Ukraine specializing in IT industry development.

The urgency for this legislative update was highlighted in the Memorandum of Economic and Financial Policies signed between Ukraine and the IMF. The IMF expressed worries about the current lack of regulation in the virtual asset sector, which could pose risks to price stability and monetary transmission efficiency.

Bornyakov emphasized the importance of legalizing the crypto sector, stating that it could have a significant economic impact by generating billions of hryvnias in turnover. He also noted that the Ministry of Digital Transformation is pushing for state regulation in the crypto asset market, with two bills (bill 10225 and bill 10225-1) currently in the Ukrainian Parliament for this purpose.

The deputy minister stressed the need for establishing regulatory and taxation principles for virtual assets, highlighting that proper regulation in the crypto sector will not only boost Ukraine’s economy but also enhance trust from international partners. This move is seen as crucial in utilizing the full economic potential of virtual assets and expanding Ukraine’s economic opportunities.

Furthermore, Bornyakov’s call for implementing state regulation in the crypto asset market is supported by the Ministry of Digital Transformation team, who believe that this initiative will have a positive impact on Ukraine’s economic growth and international relations.