Crypto Going Global: Bitcoin Legalized in Ukraine

Crypto Going Global Bitcoin Legalized in Ukraine

Ukraine is now team-crypto!

The Ukrainian Parliament, the Verkhovna Rada led by President Volodymyr Zelenskyy, adopted the law to legalize and regulate cryptocurrency on September 8, 2021. The bill was first drafted back in June 2020 and was passed in a nearly unanimous vote the day after El Salvador adopted Bitcoin as a legal tender.

What does the bill say?

Unlike the El Salvador’s move, cryptocurrency will not be accepted as an official payment method in Ukraine, meaning that the national currency remains to be the hryvnia. Instead, according to Euronews, the bill aims to “protect the owners of virtual assets and exchange platforms from fraud” by regulating crypto activities and clarifying the rights and obligations of different stakeholders in the crypto market. It will also permit crypto companies to register in the country and offer legal protection from the state, as long as they fulfil their tax responsibility.

In a news article by Fortune, Ukraine’s vice prime minister of digital transformation Mykhailo Fedorov comments that, “The development of a new industry will allow transparent investments and will strengthen the image of our country as a high-tech state.” Moreover, the deputy minister Oleksandr Bornyakov further adds that, “The adoption of specialized legislation is going to stimulate the attraction of foreign exchanges to the Ukrainian market.” Besides, Ukraine is also looking to establish a cryptocurrency market for business and investors by 2022. 

What does it mean for Ukraine?

While it looks like the Ukrainian government is taking this crypto-friendly step to attract investors, experts like the CEO of Binaryx, a virtual asset exchange platform, Oleg Kurchenko warned that the new rules might drive crypto investors away if they find the state untrustworthy. As of writing this article, the public reaction toward the adoption remains unclear.

Before the adoption, the usage of cryptocurrency remained in a gray area as it was neither legal nor prohibited. Ukrainians could purchase and trade crypto, but the local courts could not protect them from potential frauds. That said, the usage of crypto by companies and exchanges have been closely monitored by the law authority in Ukraine. In fact, the Ukrainian law enforcement agencies had regarded cryptocurrencies as a “scam” and raided crypto businesses with no justification.

Global trend

Recent months have seen governments across the globe attempting to legalize cryptocurrency, in particular in Latin America, such as Cuba, Paraguay and Panama. Venezuela even took a step further to establish its own cryptocurrency—the Petro—despite being dubbed as a “failure” for the lack of competitiveness and public support. In August, the European Union proposed new rules to ban anonymous crypto exchanges by forcibly collecting identifying information of those transacting crypto. However, Euronews also reported that many Europeans expressed their wish for their own government, instead of the European Union, to regulate cryptocurrency.

Volatility of cryptocurrency

Although the media seems to connect the adoption of Bitcoin in El Salvador to the abrupt price drop of Bitcoin on Tuesday, the co-founder of Zap Protocol Nick Spanos described the incident to be a “false dip” and predicted that Bitcoin could reach US$100,000 by the end of 2021.

Regardless of the action taken upon it—adopting it as legal tender or regulating trades in crypto—it is no doubt that governments around the world are realizing the demand and capacity of cryptocurrency. One thing that crypto owners are absolutely going to pay close attention to is whether those actions will add to the volatility of crypto prices and, in turn, the profits they will make.

Header Image Courtesy of Freepik

SHARE THIS STORY

Share on facebook
Share on twitter
Share on linkedin
Share on email

RELATED POSTS

Shrinkflation

What Is “Shrinkflation” and Why Opting For It Isn’t Companies’ Only Choice

You might have noticed grocery prices are soaring, or your usual go-to pack of chips is shrinking in size—all thanks to massive inflation. As of August 2022, the U.S. consumer price index (CPI), which measures the change in consumer prices for a specific set of goods over a period, has increased by 8.3% (year-on-year). Although it has gone down slightly from 8.6% in May, the highest it has ever been since 1981, it remains high and worrying.

Top 3 Affordable and Little-Known Smartphones to Bring Home in 2022

Top 3 Affordable and Little-Known Smartphones to Bring Home in 2022

Apple has remained at the center of the smartphone industry for years. The sleek, striking design, ever-improving chip and robust camera system of the iPhone have made it one of the most sought-after smartphones in the world. This month, Apple cemented and extended its lead in the industry by putting forward the next generation of iPhones.

5 More Business Podcasts You Need to Listen To

5 More Business Podcasts You Need to Listen To

Entrepreneurs have one thing in common—they always look for opportunities to learn and grow. To gain an understanding of running a viable business, you need to listen to the experiences of those who have emerged triumphant in the business world. A great way to do so is by tuning into a vast number of business and entrepreneurship podcasts scattered across the internet today.

5 Hobbies To Maximize Your Entrepreneurial Drive

5 Hobbies To Maximize Your Entrepreneurial Drive

Entrepreneurs are a special breed of person. They’re go-getters, risk-takers and dreamers. Yet, even the most driven entrepreneur needs to take a break from time to time. Spending every second of your day on your business is stressful, and you will lose your drive very soon. If you want to stay energetic and ready to take on new challenges at work, hobbies are what you need.

Making the Metaverse a Force for Good with the Metaverse Charity Foundation

Making the Metaverse a Force for Good with the Metaverse Charity Foundation

If you are a frequent reader of our website, you must have seen us mention The Sandbox, Decentraland and Axie Infinity. These are some of the most popular metaverses out there, and the one thing they all have in common is that they all have their origins in Asia. While Asia is home to all these metaverse projects, it suffers two main issues: the region has major rural-urban inequality as well as a significant wage difference between high-skilled and low-skilled occupations.

How Do Stores Get You to Spend More Money

How Do Stores Get You to Spend More Money?

Have you ever entered a grocery store to buy some milk but ended up with a bag full of items you didn’t even need? You’re not alone if you feel guilty for spending more money than you intended. It’s not our fault that we keep putting items in our shopping carts; we are manipulated to do so! To make sure you buy more, retailers will go all the way to carefully engineer every aspect of their store.