New Fintech legislation in Ukraine outlined fundamentals of functioning and regulation of modern fin-technologies, particularly, circulation and usage of e-money, payment mechanisms and virtual currencies within Ukraine. Legal provisions provide greater safety and higher effectiveness of financial services offered in country, particularly, for every company with financial license. Ukrainian legislators harmonized new Law with updated EU norms regulating payments fields, and with provisions on control of digital money circulation, which regulate all e-payments that are made within the European Union.
Ukrainians will possess opportunities to choose not a specific service provider with entire services package: actual services themselves from various providers – in a way that is convenient for the client. It is worth noting that the law itself will not bring all these changes with a wave of the hand. Ahead is the path of developing and standardizing open APIs, adapting internal processes, and developing best practices. It’s essential to understand that the changes will not be instantaneous, but over time they will qualitatively change our interaction with banks.
The circle of firms-providers of fiscal services was somewhat extended, in addition, their activities were clearly identified and a list of permitted transactions was given. Particularly, the law distinguishes next-mentioned categories:
- banking establishments;
- payment organizations;
- affiliated companies of enterprises of foreign origin;
- e-money establishments;
- postal establishments;
- facilities having official rights to offer such services;
- non-financial payment establishments;
- government agencies.
The law concerns the conditions for introducing e-banking concepts in Ukraine; it changes the very principles of access to settlements. Consequently, the client will no longer be tied to a specific bank and its mobile application – a completely new field of competition appears. Soon, the client’ll be able, as before, to use one bank services where his/her account is opened, but the interface and even e-payment instrument can be chosen separately – among the offers available on market.
Services list for Fintech company in Ukraine
Law introduced new activities for financial companies in Ukraine.
- Crediting money.
- Money withdrawal, with exception of e-wallets.
- Conducting operations with customer capital, transferring funds, in particular transfers of credit funds, and carrying out operations with permitted fiscal tools.
- Issue of payment tools.
- Transferring funds not creating accounts.
- E-money issuance and payments with them.
- Maintenance of e-wallets.
Provisions of this bill say that National Bank should form a separate sector for checking modernized payment technological developments and remedies with implementation of modern mechanisms. After checking is over, participants in this sector can obtain appropriate permission and continue their working. Law also gives for a period of two years: new firms are subject to simplified demands and regulations, in particular, a less stringent registration procedure.
Via adoption of a new legislative framework, a more reliable, secure and modern legal basis for FinTech organizations in Ukraine is being created. It improves the level of operation of national FinTech regulative frame. Thus, greater horizons are opened up for company in Ukraine for sale in such niche, particularly, by expanding scope of modernized developments that will now become accessible to Ukrainian consumers.
If you have any questions regarding Fintech in Ukraine, please contact our specialists. We have many years of expertise of working with different types of businesses in more than a hundred jurisdictions. Our experts will help you choose Fintech companies for sale, and provide comprehensive professional support at every stage of the transaction.
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