Despite not recognizing cryptocurrencies as legal cash, a new cryptocurrency-related bill in Ukraine would enable payments in cryptocurrencies such as Bitcoin (BTC), according to a government official.
Oleksandr Bornyakov, deputy minister of Ukraine’s Ministry of Digital Transformation, is sure that “quite legal to pay with cryptocurrencies” through payment intermediaries that facilitate crypto-to-fiat conversions will be quite legal in Ukraine.
In a Friday interview with local financial newspaper Minfin, the official stated that Ukraine’s draught bill on virtual assets “clearly states” that cryptocurrencies are not legal money in the nation and that only crypto purchases are permitted.
Local payment processors would still be permitted to provide services for converting crypto to fiat to enable payments derived from crypto, according to the law, which asserts: “Today, the legislation in Ukraine also does not allow you to pay in dollars, but you can easily pay for purchases with a dollar card. Currencies are converted instantly during payment. […] Therefore, it will be quite legal to pay with cryptocurrencies in Ukraine, but through an intermediary.”
The impending bill, according to Bornyakov, will legally legalize the process of cryptocurrency exchanges and accounting. “We expect that there will be a whole market of intermediary services for payment of goods by cryptocurrencies, their storage and exchange. This will expand the possibilities of their use,” he stated.
The Ministry of Digital Transformation proposed the adoption of an amended draught bill “On Virtual Assets” at the second reading in late June, as previously reported by Cointelegraph. Monobank, a local e-bank, later announced intentions to create a debit card with Bitcoin trading capabilities.
The announcement comes only days after Ukrainian President Volodymyr Zelensky approved yet another digital currency-related law, the Payment Services Law. The law made it legal for Ukraine’s central bank to create a digital currency known as the digital hryvnia.