Ukraine has legalized Bitcoin, making it one among the foremost countries to establish basic rules for the crypto market. El Salvador made Bitcoin legal currency a few days before. Cuba had enacted a cryptocurrency-recognition legislation only two weeks before. Both the United States and Germany have rules governing digital assets.
The Ukrainian Parliament approved a Bill prepared last year that explains the asset and safeguards its users from theft in a nearly unanimous vote. The legislation aims to clarify important crypto terminology such as cryptocurrencies, digital wallets, and private keys. The Bill currently needs President Volodymyr Zelensky’s approval.
Until recently, cryptocurrencies were not prohibited nor allowed in Ukraine. Despite the lack of regulations to safeguard them, Ukrainians were permitted to purchase and trade cryptocurrencies. Nonetheless, in the lack of a legislation, Ukrainian police and prosecutors often targeted crypto companies and “forcibly removed costly equipment without any premises,” according to Kyiv Post.
As per CNBC, the Security Service of Ukraine banned a web of cryptocurrency exchanges in Kyiv in August, claiming that it promoted money laundering and offered transactional confidentiality.
Although becoming legalized, Ukrainians will not be allowed to utilize Bitcoin in the same way that they use the official currency, the hryvnia.
Nonetheless, the legislation allows people to possess, exchange, and transact cryptos on Ukrainian-registered local or international exchange platforms. As per Kyiv Post, Ukraine is banking on a crypto market to attract firms and investors by 2022.
President Zelensky has promoted the nation’s cryptocurrency market as a selling factor for investing in the United States. Mykhailo Fedorov, Ukraine’s Minister of Digital Transformation, has mentioned modernizing the payment platform so that the country’s central bank may issue virtual cash.
To do just that, the government would first have to change the tax law and the code of law. The foremost step toward that goal is the legalization of cryptocurrencies. Ukraine’s daily transaction in cryptocurrencies is $37,000. It succeeds a few other countries in establishing basic rules for cryptocurrency. “Only a few nations across the globe have legalized digital currencies, including Germany, Luxembourg, and Singapore. Fedorov reminded the Kyiv Post that Ukraine would be one among them.”
