REUTERS
President Petro Poroshenko signed off the adopted bill into law on July 4.
The Law "On Currency and Foreign Exchange Transactions" liberalizing currency circulation will come into force on February 7, 2019.
As follows from the text of the law published on the parliament's website, under the new rules, banks will be able to conduct currency transactions without additional licenses, businesses may receive loans from non-residents without their registration, while citizens will be able to invest abroad without individual NBU licenses required.
The law also cancels the maximum deadline for settling export and import contracts for business at 180 days and sanctions for violations in the form of a fine of 100% of the transaction amount and a ban on foreign economic activity.
In addition, the new law abolishes the exchange control of small payments, leaving only the current financial monitoring of transactions worth UAH 150,000.
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According to the law, financial market regulators, including the National Bank, the National Commission on Securities and the Stock Market and the National Commission for Regulation of Financial Services Markets, should bring their regulatory acts in line with this new law and publish them no later than 30 calendar days until the day the law comes into force.
At the same time, the entry into force of the law does not mean automatic cancellation of existing NBU restrictions on the market.
"Normative-legal acts of the National Bank of Ukraine, adopted in accordance with Paragraph 5 of this Article, introducing safety measures determined by Part 1 Article 12 of this Law, and coming into effect simultaneously with the enactment of the Law, shall be valid until they are recognized by the National Bank of Ukraine as invalid," the document says.
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As UNIAN reported, the Verkhovna Rada on June 21 passed the Law "On Currency and Foreign Exchange Transactions", which will replace the outdated decree of the Cabinet of Ministers "On Currency Regulation System and Currency Control" of 1993 and presupposes the principle that "everything that is not directly prohibited by law is allowed."
Ukrainian President Petro Poroshenko signed the corresponding bill into law on July 4.