L&M Finance Group

Changes in legislation in May for the period of martial law

The Verkhovna Rada of Ukraine adopted two draft laws regarding the continuation of martial law and general mobilization.

On May 18, the President of Ukraine signed:

· Law No. 3057-IX "On Approval of the Decree of the President of Ukraine "On Extending the Term of Martial Law in Ukraine". It provides for the extension of the martial law in Ukraine from 05:30 on May 20, 2023 for a period of 90 days;

· Law No. 3058-IX "On Approval of the Decree of the President of Ukraine "On Extension of the General Mobilization Period". According to it, the period of general mobilization is extended from May 20, 2023 for 90 days.

Accordingly, the bills adopted on May 20 will extend the period of martial law and general mobilization for 90 days, until August 18, 2023.

On May 2, the Verkhovna Rada of Ukraine adopted a draft law on improving legal regulation in the acquisition of rights to land plots.

Therefore, according to the explanatory note, the draft law envisages the following :

· inspection rules for purchasers agricultural lands are not extended at purchases and them of land for horticulture with an area of up to 0.25 ha and land for own use use with an area of up to 2 hectares;

· area agricultural land that are jointly owned spouses are included in the total square agricultural land of the spouse (former from the spouses), according to which the property was registered;

· right of preemption purchase agricultural land can be transferred only for a certain period, and not indefinitely;

· expansion of the list of persons who are prohibited from purchasing agricultural lands to which the participant (shareholder, member) or beneficiaries and owner and legal entity, regarding which applied sanctions;

· in case state registration of acquisition of land ownership plot by subject preemptive right or termination rent land, at the same time state registration is carried out in the State Register of Rights, without submission the relevant application by the applicant;

· the possibility of repurchase of the land, which is in state and communal ownership, by persons who for three years are engaged in landing gardens and berries , if there are suitable plantations created no later than 2035;

· in recovery holding of land transmission auctions in the use of agricultural land, which are in state and communal ownership.

The law will enter into force on the day following its publication.

The Cabinet of Ministers of Ukraine adopted Resolution No. 437 dated May 2, 2023, which will allow the buyer of a new vehicle to entrust the legal entity that sells vehicles with representative functions in service centers of the Ministry of Internal Affairs.

Thus, upon application, power of attorney and documents from the Buyer, the Seller of the vehicle (a legal entity) will be able to give the Buyer a car already registered in Ukraine - with a state registration number plate and a vehicle registration certificate immediately in the name of this owner (Buyer). Therefore, the Buyer of a new car no longer needs to contact the service centers of the Ministry of Internal Affairs in person.

This resolution will enter into force three months after its publication, i.e. August 6, 2023.

On May 19, the government adopted Resolution No. 514 of the Cabinet of Ministers regarding mandatory technical control of vehicles.

· This resolution introduces an electronic form of the protocol for checking the technical condition of the vehicle, which will be contained in the Unified State Register of the Ministry of Internal Affairs. Such a decision will strengthen the control and recording of the processes of technical inspection of vehicles and create accessible conditions for access to the necessary information for all structural divisions of the Ministry of Internal Affairs and the Main Service Center of the Ministry of Internal Affairs.

· The procedure for approving the conversion of vehicles of legal entities that provide carrier services has been simplified by excluding, when submitting an application, a copy of the vehicle registration certificate and the Act of its technical inspection, due to the fact that these documents are automatically entered into the digital database.

· The resolution also made changes to the procedure for checking the technical condition of the vehicle. In particular, such an inspection must be carried out in parallel in video format, by video recording the process of mandatory technical control of vehicles. The video materials will be stored in the national database, which can be accessed by any interested persons, accordingly, by contacting the Service Center at the Ministry of Internal Affairs.

The corresponding changes will enter into force already in August of this year.

On May 16, the European Council finally adopted the Regulation on the regulation of the crypto-asset market (Market is crypto - assets – MiCA).

This is the first EU legislative framework in the crypto-currency regulatory sector, the purpose of which is to develop a European approach that promotes technological development and ensures financial stability and consumer protection. MiCA makes significant changes to the EU regulatory landscape, creating a harmonized regime for the issuance and provision of services in the field of crypto-assets, which corresponds to the international reach of this technology.

The text itself will enter into force gradually in three stages, the first part (main) will enter into force twenty days after the publication of the text of the Regulation in the official European journal, the second part (regulation of stablecoins) will enter into force after 12 months, in the middle of 2024, and the last final part (regulation of crypto-asset providers) will enter into force in 18 months, namely at the end of 2024 (beginning of 2025).

Given the fact that Ukraine has received the status of a candidate for EU membership, the norms of national legislation must be adapted to European standards. That is why the National Securities and Stock Market Commission, together with its partners, has already started preparing the implementation of the newly adopted MiCA Regulation to the national legislation of Ukraine, and in general to the law on Virtual Assets.