Cryptocurrency exchanges in Ukraine will be prohibited from using client funds

According to representatives of the Ministry of Digital Transformation of Ukraine, after the Law on Virtual Assets comes into force, Ukrainian investors will be able to protect their funds legally. The new rules will prohibit crypto exchanges registered in Ukraine from using their clients' money without their prior permission.

«Since Ukraine has been granted the status of an EU candidate, it is necessary to adapt our law to the European MiCA (Markets in Crypto-Assets) regulations. We are working on this together with the National Securities Commission and the National Bank ,» said Yulia Parkhomenko, Director of the Digital Economy Directorate of the Ministry of Digital Transformation, at the Blockchain Hub Davos event.

The legalization of virtual assets will allow crypto businesses to operate in Ukraine officially, attract investment in the economy and increase tax revenues to the state budget. «We strive to protect the crypto assets of Ukrainians and help avoid fraudulent schemes, in particular, by adapting our legislation ,» Parkhomenko emphasized.

As a reminder, according to the plans of the Ministry of Digital Transformation, Ukraine will launch its own state cryptocurrency (CBDC) in 2030. The Vice Prime Minister of Ukraine and Minister of Digital Transformation Mykhailo Fedorov plans to significantly reduce the circulation of conventional paper money by that time. The innovations will make Ukraine one of the leaders in the cryptocurrency sphere, attracting the attention of potential investors, Fedorov shared his opinion at the World Economic Forum in Davos. The minister also spoke about his willingness to receive his salary in cryptocurrencies. Fedorov wants to become the first user of the Ukrainian CBDC.