Ukraine legalizes bitcoin
Ukraine legalizes bitcoin

Ukraine became the fifth country in just a few weeks to set ground rules for the cryptocurrency market, which shows that governments around the world understand that Bitcoin will continue to exist.

In a nearly unanimous vote, the Verkhovna Rada of Ukraine passed a law to legalize and regulate cryptocurrencies. The bill was introduced in 2020 and is currently being handed over to the office of President Volodymyr Zelensky.

Encryption is in a legal gray area in Ukraine. It enables residents to buy and trade cryptocurrencies. However, companies and platforms that conduct cryptocurrency transactions are often subject to close scrutiny by law enforcement agencies.

According to the Kiev Post report, the authorities tend to deal with virtual money, believing it to be a scam, and crypto-related companies face surprises during controls and often confiscate expensive equipment for no apparent reason. .

In August, for example, Ukrainian security services blocked a network of alleged cryptocurrency platforms operating in the capital, Kiev.

The NSA claims that these platforms facilitate money laundering activities and ensure the anonymity of transactions.

The new legislation also provides some fraud protection for those who own Bitcoin and other cryptocurrencies, and for the first time in the Verkhovna Rada, lawmakers have attempted to define key terms in the crypto world.

If the president is signed, virtual assets, digital wallets and private keys are defined under Ukrainian law.

Contrary to El Salvador’s decision to legalize Bitcoin this week, Ukraine’s crypto law has neither encouraged the adoption of Bitcoin as a payment method nor compared it to the local currency, the hryvnia.

However, the old vote on nuclear power is part of Kiev's larger drive to rely on bitcoin.

Ukraine legalizes bitcoin

According to the “Kiev Post” report, the country plans to open the cryptocurrency market to companies and investors by 2022.

During an official visit to the United States last month, President Zelensky cited the innovative Ukrainian legal market for virtual assets as an investment selling point.

Ukraine's Minister of Digital Transformation, Mykhailo Fedorov, said the country is working hard to modernize the payments market. This is intended to enable the National Bank to issue digital currencies.

But for Bitcoin followers, new Ukrainian laws and political promises like this are not being kept.

Ukraine has joined a long list of countries that have included Bitcoin in their national laws.

El Salvador was the first country to introduce bitcoin as legal tender this week and keep it on its balance sheet. The president has linked his political fate to the results of the Bitcoin National Experiment.

Two weeks ago, Cuba passed a law recognizing and regulating cryptocurrencies based on social and economic interests.

Last month, the United States proposed rules for cryptocurrency brokers in its trillion-dollar infrastructure bill.

A new German law now allows funds that previously banned investing in cryptocurrency to invest up to 20% of their funds in cryptocurrency.

It looks like Panama is next as this Central American country is working on its own cryptocurrency law.

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