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

Mercedes-Benz Launches the New Luxurious CLE Cabriolet

Mercedes-Benz has launched the CLE Cabriolet, building on its heritage of creating four-seater convertible vehicles. This new addition is characterized by its expressive design, advanced technology, and high-quality features, ensuring an enhanced driving experience. The model, which evolves from the CLE Coupé, stands out with its traditional fabric acoustic soft top and distinct high-quality details, making it uniquely positioned in the market. Designed to offer dynamic performance alongside exceptional daily comfort, the CLE Cabriolet supports year-round open-air enjoyment.

4 Companies Reusing Coffee Husk for Eco-Friendly Innovations

A daily cup of coffee is more than just a morning ritual—it’s a powerhouse of energy and health benefits. Beyond keeping you alert, coffee supports brain health, maintains liver function and may even lower the risk of depression. However, the journey of coffee from plantation to mug involves an energy-intensive process that produces significant waste, particularly coffee husks.

Fort Worth Hosts New LG Electronics Facility for EV Charger Assembly

LG Electronics has initiated its first U.S. production facility for electric vehicle (EV) charging stations in Fort Worth, Texas, aiming to bolster the national EV charging infrastructure and generate employment opportunities. The facility’s inauguration was marked by an event attended by Fort Worth Mayor Mattie Parker and LG executives Alec Jang, H.K. Suh and Nicolas Min. This development is part of LG’s strategy to expand its presence in the EV charger market by providing high-quality charging solutions and services.

KPMG Introduces “The Road to Leadership” along with Harvard Business School

KPMG in India and Harvard Business School Publishing Corporation (HBSPC) have announced a collaboration to launch “The Road to Leadership”, a program designed to empower mid-level managers with the skills and insights needed to ascend to leadership roles. This collaboration brings together HBSPC’s rich legacy in leadership education and KPMG’s deep industry experience, offering participants a unique blend of theoretical knowledge and practical insights tailored for the Indian context.

What Are the Negative Impacts of AI on the Film Industry?

The arrival of artificial intelligence (AI) in filmmaking is changing the game, introducing endless possibilities into an industry known for its creativity. Hollywood, known for its glitz and glamour, is already on board, using AI to pick out potential hits through script analysis and predictive analytics. This allows filmmakers to make data-informed decisions on which scripts might win the audience’s hearts.