The Markets in Crypto-Assets (MiCA) rule was recently approved by the European Parliament, and soon after, Ukrainian officials made a public announcement announcing that they will follow suit and enact the same set of laws domestically.
On April 20, Yaroslav Zheleznyak, the deputy chairman of the Ukrainian Tax Committee, stated on his Telegram channel, “We, along with colleagues from the NKCPFR [National Commission on Securities and the Stock Market] and other regulators, are already working on implementing some provisions of MiCA to make crypto assets legal in Ukraine.”
A member of the NKCPFR named Yuriy Boyko stated, “I am sure Ukraine will be one of the first countries to implement this regulation into national legislation.”
The launch of MiCA represents a significant development for the European Union’s crypto sector.
Since crypto firms are now compelled to abide by 27 different regulatory frameworks across EU member nations, MiCA is the culmination of years of work by European policymakers to provide universal legislation and establish standardized norms for crypto assets throughout the EU.
MiCA’s adoption is anticipated to make startups in the EU more competitive, which might increase their market share relative to uncontrolled rivals.
Various players in the cryptocurrency business have responded favorably to the development, even though EU parliamentarians must still complete legal and linguistic tests for MiCA and publish the bill in the EU journal.
The attempt by Ukraine to embrace EU laws comes as the Eastern European nation prepares to receive EU candidate status in June 2022. According to the European Council, European regulators “acknowledged the considerable efforts that Ukraine has demonstrated towards meeting the objectives underpinning its candidate status for EU membership.”
In Chainalysis’s Global Crypto Index for 2022, Ukraine is ranked third, according to Triple-A. This indicates that about 2021, it moved up a position. The Ukrainian government was compelled to adapt and set up mechanisms that could take donations and assistance in any way when Russia invaded the nation in early 2022.
According to Triple-A, bitcoin has assisted the Ukrainian military’s campaign against Russia, and Ukraine is one of the first nations in the world to completely adopt a regulatory framework for cryptocurrencies. This legislative framework was developed after the Ukrainian government understood that accepting cryptocurrency donations was a quick and simple method to manage the influx of foreign donations that were coming their way. For instance, in February 2022, the Binance Charity Foundation pledged a minimum of USD 10 million to assist with the humanitarian crisis in Ukraine.
According to Triple-A, 6.5 million Ukrainians, which is approximately 15.72 percent of the nation’s overall population, are cryptocurrency owners.