The draft Law of Ukraine “On Payment Services”, developed taking into account business proposals, was registered in the Verkhovna Rada.
On November 12, 2020, the Draft Law of Ukraine “On Payment Services” was registered in the Verkhovna Rada of Ukraine with No 4364. This Law will significantly modernize the regulation of the payments and money transfer market in Ukraine.
Adoption of this bill will allow adapting Ukrainian legislation to EU legislation, forming a legal basis for the integration of the Ukrainian payment market with the European one, in particular integrating the provisions of the Payment Service Directive 2 (PSD2) and the Electronic Money Directive (EMD) provided by the Association Agreement between Ukraine and EU.
The new Law will replace the outdated current national legislation, promote the modernization of the payment market of Ukraine and create a basis for its further development, enabling:
1) to adapt the legislation of Ukraine to the EU legislation and to form a legal basis for the integration of the payment system of Ukraine with the EU payment system;
2) to modernize the payment market of Ukraine and create a basis for its development, in particular by:
– introduction of Open banking standards;
– granting the right to non-banking institutions to issue payment cards, issue e-money, open and maintain payment accounts;
– granting the right to public authorities to provide certain types of payment services without a license;
– strengthening the protection of the rights of payment service users;
3) regulate the procedure for providing payment services in Ukraine by:
– bringing terms and their definitions in line with common international practice in general and EU legislation in particular;
– expanding the list of payment services that can be provided in Ukraine;
– resolving the issue of providing payment services by certain business entities, such as postal operators, telecommunications operators, small payment institutions, the provision of limited payment services by legal entities, etc.
This Draft Law includes proposals submitted by experts of the Electronic Payments Committee of the Association.
The EBA expresses its gratitude to the National Bank of Ukraine for the active involvement of business representatives in the drafting process and welcomes the openness of the Verkhovna Rada Committee on Finance, Tax and Customs Policy to the dialogue with market participants. We hope that the Draft Law will be adopted by the end of 2020.
If you need additional information, please contact Victoria.Burdeina@eba.com.ua, the Electronic Payments Committee Coordinator of the Association.