Юрист считает, что Украина должна улучшить проект криптолегализации для защиты инвестиционного климата Translation: Lawyer believes Ukraine must improve the cryptocurrency legalization project to protect the investment climate.

In his view, the project should align with the government guarantees of legal regime stability for Дія.City, with its conditions remaining unchanged for 25 years from the date of adoption.

«The proposal to transition Дія.City participants to a general taxation system regarding virtual asset operations contradicts the principle of legal certainty and poses risks to the investment climate,» explained Bilyk.

Another critical aspect is the establishment of a transition period of at least one year and the easing of sanctions. This will enable market participants to adjust to new requirements while awaiting the details of regulatory norms. Otherwise, the likelihood of widespread violations will increase due to the objective impossibility of swift compliance implementation, the lawyer cautioned.

The expert advocates for a division of the regulatory authority over the virtual assets market between the National Bank of Ukraine and other competent bodies, depending on the type of asset.

The draft law requires harmonization with the European regulations outlined in MiCA, particularly in terms of expanding the list of entities eligible for a license to issue virtual assets.

«The EU permits token issuance to all credit institutions. The restriction proposed by Ukraine, limiting access solely to banks, contradicts the principle of equality and impedes market development,» Bilyk noted.

He deemed excessive the creation of a separate registry for users, citing that «data is already stored on the blockchain,» and duplication will incur additional costs for providers. The wording regarding information provision to the regulator requires clarification to prevent abuses and ensure legal certainty.

The expert believes integrating the provisions of the draft law into the international context is appropriate.

«Restricting virtual asset activities for companies registered in offshore jurisdictions could lead to a ban on USDT and other tokens, resulting in investment losses and project outflows, thereby making the market less transparent,» he indicated.

The list of potential amendments is not exhaustive and may be expanded. Bilyk emphasized that the adoption of the draft law in its first reading only signifies approval of its concept. The specialized committee can propose modifications within 14 days.

«However, even moving to a second reading does not guarantee the document will be approved,» he added.

It is worth noting that in May, the Office of the President of Ukraine blocked the consideration of this draft law. According to some reports, the decision was influenced by the State Securities and Stock Market Commission, which was expected to be one of the market regulators.