Ukraine to adopt MiCA for digital asset regulations

Just days after the European Parliament passed the Markets in Crypto Assets (MiCA) regulatory framework, Ukraine announced it would adopt the framework in its digital asset industry.

MiCA got the nod from the European Parliament last week, and while it will take at least a year before taking effect, it’s being hailed as a globally significant move for the industry. It will require VASPs to be registered, implement KYC and transparency checks and safeguard funds. Ukraine wants to extend MiCA’s investor protection measures to its citizens.

Yaroslav Zheleznyak, the Ukrainian Tax Committee deputy chairman, confirmed on Telegram that regulators are working on integrating MiCA.

“We, along with colleagues from the NKCPFR and other regulators, are already working on implementing some provisions of MiCA to make crypto assets legal in Ukraine,” he said.

NKCPFR refers to the National Commission on Securities and the Stock Market, a body overseeing the securities market.

Yuriy Boyko, a member of the NKCPFR, confirmed the plans, expressing confidence that Ukraine will implement MiCA faster than most European countries.

“This is a truly historic event. I am sure Ukraine will be one of the first countries to implement this regulation into national legislation. At the moment, the text of the draft law is almost ready, and soon we will start discussions with the main stakeholders,” he commented in a statement by the securities body.

Ukraine has been pro-Crypto regulations for years. The Eastern European country passed the draft bill “On Virtual Assets” to protect crypto investors and amended it last December to give digital assets legal status in the country.

Ukraine, which has been under attack by neighboring Russia for over a year now, isn’t a member of the EU. This could change with the European Commission conferring the status of a candidate for EU membership to the country. However, this process takes years, and there’s no guarantee that EU member states will admit Ukraine into the economic bloc.