Major global crypto exchange Binance will collaborate with Ukrainian authorities to establish cryptocurrency-related legislation in the country.

Potential legal status of cryptocurrencies in Ukraine

Binance has signed a memorandum of understanding (MoU) with the Ministry of Digital Transformation of Ukraine to jointly work on the legal status of cryptocurrencies in the country, according to a press release shared with Cointelegraph on Nov. 6.

According to the announcement, the Ministry, Members of Parliament (MP) and commercial companies are planning to finalize the relevant bills and introduce them to the Ukrainian Parliament, the Verkhovna Rada, by the end of 2019.

Binance CEO Changpeng Zhao (CZ) confirmed the news on Twitter, claiming that the action is a “real change from a few years ago.” In the press release, CZ stated that the legalization of cryptocurrencies and the adoption of progressive legislation can play a key role in bringing positive growth in the economy as well as attract additional investments.

Ukraine and Binance to create new virtual assets

As part of the agreement, the Ministry and Binance will form a working group focused on the strategy of blockchain implementations as well as the creation of “new virtual assets and virtual currencies market in Ukraine,” the announcement says.

Deputy Prime Minister Mykhailo Fedorov emphasized that Ukraine has finally entered a situation where the executive, legislative authorities and the market “have come to an understanding of the regulation of the Ukrainian cryptocurrency market.” He stated:

“Thanks to this step, both Ukrainians and global cryptocurrency companies will be able to operate in Ukraine openly and transparently. In addition, we welcome Binance's willingness to provide us with advisory assistance as the experience of one of the leading world players in this field is very useful for us at the stage of forming the legislative framework and the conditions for market regulating.”

Three bills on the way

Prior to the announcement, MP Oleksii Zhmerenetskyi announced that current crypto legislation is nearing completion. In a post on Oct. 22, the MP provided public access to three bills to regulate cryptocurrency in the country and invited blockchain and crypto industry experts to review the provisions and submit their own proposals.