new law

New pre-law allows cryptocurrency payments in Ukraine

According to a Ukrainian government official, a new bill in the country is expected to allow citizens to use cryptocurrencies like Bitcoin as a means of payment, despite not recognizing cryptocurrencies as legal tender.

Oleksandr Bornyakov, Deputy Minister of Digital Transformation of Ukraine believes that cryptocurrency payments are “quite legal” in Ukraine through payment intermediaries, which allow the conversion of cryptocurrencies to fiat.

In an interview with local financial newspaper Minfin on August 6, the official said that Ukraine’s draft law on virtual currencies “states” that cryptocurrencies do not constitute legal currency in the country, Only allows to buy cryptocurrencies.

However, the bill stipulates that local payment processors can still provide crypto-to-fiat conversion services to enable crypto-derived payments, stating :

“Today, the law in Ukraine also doesn’t allow you to pay in dollars, but you can easily pay for your purchases with a dollar card. Currencies are instantly converted during checkout. […] Therefore, it would be quite legal to pay with crypto in Ukraine, but through an intermediary.”

According to Bornyakov, the upcoming bill will officially legalize the process of trading and reporting cryptocurrencies. “We expect that the entire market of intermediary services will pay for goods in cryptocurrencies, store and exchange them. This will expand the possibilities of their use,” he added.

As previously reported by Toiyeubitcoin, the Ministry of Digital Transformation of Ukraine recommended the adoption of the updated draft law “On virtual assets” by the end of June. Local electronic bank Monobank later revealed its plans. launched a debit card featuring Bitcoin transactions.

This news comes after the President of Ukraine Volodymyr Zelensky approved another law related to cryptocurrencies, called the “On Payment Services” law. The law officially authorizes Ukraine’s central bank to issue a central bank digital currency, the digital hryvnia.

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