Ukrainian President Signs Law Opening Door for Digital Hryvnia, Regulatory Sandbox

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Ukrainian President Signs Law Opening Door for Digital Hryvnia, Regulatory Sandbox

President Volodymyr Zelensky has signed a instrumentality that volition let the National Bank of Ukraine to contented its ain integer currency. The caller legislation, which aligns Ukrainian regulations with EU rules, volition besides stiffen authentication requirements for clients of outgo work providers.

New Legislation Allows Ukrainian Central Bank to Issue Digital Currency

The President of Ukraine Volodymyr Zelensky has signed the instrumentality “On Payment Services” which was adopted by the Ukrainian parliament connected June 30, the president’s medication announced this week. The authorities aims to “modernize and further develop” the outgo services marketplace and beforehand the instauration of innovations successful the fiscal sector, a press release explains.

Ukrainian President Signs Law Opening Door for Digital Hryvnia, Regulatory Sandbox

One of the provisions successful the measure grants the National Bank of Ukraine (NBU) powers to contented its ain cardinal slope integer currency (CBDC). Authorities successful Kyiv person been mulling implicit a task to make a integer hryvnia for rather a while. A precocious conducted survey has indicated that the country’s fiscal assemblage would similar the e-hryvnia to facilitate transactions successful the crypto space.

NBU volition besides beryllium capable to acceptable up a regulatory sandbox to trial caller services, technologies and tools successful the payments assemblage that volition beryllium based connected innovative technologies, the president’s bureau explained. The level volition let the fiscal regulator to intimately interact with startups from the manufacture and amended recognize their needs.

Ukraine to Introduce Stricter User Authentication Rules for Payment Service Providers

The instrumentality “On Payment Services” aligns Ukraine’s authorities with the EU’s regal model successful the field, facilitating a aboriginal integration of the country’s outgo strategy with that of the European Union. Ukrainian lawmakers person adopted the norms of important European regulatory acts specified arsenic the Second Payment Directive (PSD2) and the Electronic Money Directive (EMD).

The authorities is tailored to guarantee transparency successful the proviso of outgo services and fortify user protection. Payment companies volition person to conscionable stricter requirements regarding hazard management. In definite cases, the platforms volition beryllium required to instrumentality enhanced idiosyncratic authentication procedures, indispensable to forestall cyber fraud.

Ukrainian President Signs Law Opening Door for Digital Hryvnia, Regulatory Sandbox

The instrumentality defines 9 antithetic categories of outgo work providers, introducing caller ones similar physics wealth institutions and branches of overseas outgo institutions. Non-bank outgo work providers, specified arsenic outgo institutions, e-money institutions, and postal operators volition beryllium capable to unfastened outgo accounts, contented outgo cards, and physics money. Non-bank fiscal institutions volition not beryllium required to enactment successful outgo systems successful bid to marque transfers.

The statesmanlike medication besides pointed retired that the instrumentality “On Payment Services” creates conditions for the instauration of the ‘open banking’ conception successful Ukraine. Its main intent is to integrate assorted work providers and exertion companies into a azygous outgo ecosystem. Authorities successful Kyiv anticipation to instrumentality the unfastened banking strategy by 2023.

Do you deliberation the caller authorities volition payment the Ukrainian crypto industry? Tell america successful the comments conception below.

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