Reform Index №181: changes in court jurisdiction, virtual assets regulation, and residence registration
Beta

Reform Index №181: changes in court jurisdiction, virtual assets regulation, and residence registration

Photo: ua.depositphotos.com / NewAfrica
9 May 2022
FacebookTwitterTelegram

The Reform Index is +1.3 points for the period from February 28 to March 27, 2022*, with values ranging from -5.0 to +5.0. In the previous round, the index was +0.7 points.  

*In connection with the war in Ukraine and the state’s change of focus to wartime needs for the period of active hostilities, we have changed the period of monitoring regulations for the Reform Index from two to four weeks.

For the four weeks, we spotted ten regulations likely to be game-changers in the country, but only one law scored +2.0 points, namely the law on changes in courts’ jurisdiction’

Chart 1. Reform Index Dynamics

Chart 2. Reform Index and its components in the current round

The law on changes in courts’ jurisdiction: +2.0 points

Law 2112-IX of March 3, 2022, is called for to ensure full functioning of the judiciary in emergencies (martial law, natural disasters, counter-terrorism measures, and other situations) where the court cannot administer justice at its location. This being the case, all cases pending before a court can be transferred to the nearest court or another designated court at the request of the head of the Supreme Court and by a High Council of Justice decision.

Information about the Reforms Index project, the list of Index experts and the database of the regulations assessed are available here.

Law on Virtual Assets: +1.3 points

According to this year’s report by the World Economic Forum, there are currently over 18,142 cryptocurrencies and 460 crypto exchanges. The market cap of cryptocurrencies amounts to $1.7 trillion. This creates the need to regulate virtual asset transactions to ensure macroeconomic stability. Many countries are already implementing such regulations. This year, the turn came to Ukraine.

In March, the President signed law 2074 of February 17, 2022, on virtual assets, defining the concept of “virtual assets” and transferring to the National Securities and Stock Market Commission (NSSMC) and the National Bank of Ukraine (NBU) the supervision of the virtual asset market. As of now, crypto exchanges are officially allowed to operate in Ukraine, and banks can open accounts for crypto companies. Permits to provide virtual asset services will be issued by the NSSMC, which will supervise and conduct financial monitoring for this sphere. The new law is expected to identify and isolate assets linked to money laundering and terrorist financing and clear the virtual asset market of unscrupulous users. 

Another positive aspect of the new law is the legal protection of market participants. For instance, regulatory changes will make it possible to block suspicious transactions and return stolen virtual assets to their owners. 

The law will take effect after the entry into force of the law of Ukraine on amendments to the Tax Code of Ukraine regarding taxes on virtual asset transactions, which has not yet been voted on in the Verkhovna Rada.

Procedure for declaring and registering a place of residence: +1.3 points

Resolution No.265 of February 7, 2022, significantly simplifies the registration/declaration of the place of residence. Ukrainians using the Diia app and having a qualified electronic signature (QES) can declare their place of residence in the Diia. However, it is only possible to register one’s place of residence (stay) by visiting the registration authority (Administrative Service Center) in person at the place of residence.

If a person has two or more permanent places of residence, he/she has the discretion to declare only one of them. Official mail will be sent to this address.

The new procedure eliminates the need to specify someone’s residence registration in their paper passport.

It should be noted that, as of January 20, 2022, procedure No.1450 of December 29, 2021, for establishing a ban or restriction on choosing the place of residence in areas under martial law approved by the Cabinet of Ministers, is in effect. The Military Command, together with military administrations (if available), decides independently or with the involvement of executive bodies and local governments on introducing such a ban or restriction on choosing the place of stay/residence for persons, which is immediately brought to the attention of the population through the media.

Chart 3. Value of Reform Index components and number of events

Reform Index from VoxUkraine aims to provide a comprehensive assessment of reform efforts by Ukraine’s authorities. The Index is based on expert assessments of changes in the regulatory environment in five areas: Governance, Public Finance, Monetary system, Business Environment, Energy.

Authors

Attention

The author doesn`t work for, consult to, own shares in or receive funding from any company or organization that would benefit from this article, and have no relevant affiliations