The International Monetary Fund has advised Ukraine to finalize its virtual asset legislation by the end of 2024 to address regulatory concerns and tap into the economic potential of the sector.

According to a Facebook post by Oleksandr Bornyakov, a deputy minister of digital transformation of Ukraine, the IMF has stressed the importance of updating the country’s legislation on virtual assets. This requirement is part of the Memorandum of Economic and Financial Policies signed between Ukraine and the IMF, highlighting concerns about the lack of regulation in the sector and its impact on price stability and monetary transmission.

Bornyakov emphasized the need to legalize the crypto sector to unlock its economic potential, which could lead to billions of hryvnias in turnover. The Ministry of Digital Transformation team in Ukraine is pushing for state regulation in the crypto asset market, with two bills already registered in the country’s Parliament (bill 10225 and bill 10225-1).

Establishing principles for the regulation and taxation of virtual assets is crucial for the growth of Ukraine’s economy and building trust among international partners. Proper crypto regulation could significantly boost the country’s economy and solidify its position in the global market.

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