After El Salvador, Ukraine has become the latest country to legalize cryptocurrencies and Bitcoin. The parliament of Ukraine has recently approved a new law that regulates cryptocurrency and other virtual assets.
Following El Salvador’s move to adopt Bitcoin as legal virtual currency, Ukraine became the fifth country to set up ground rules for digital currencies. With El Salvador’s Bitcoin rollout, a queue of countries comes ahead with legalizing cryptocurrency. The bill passed on Wednesday, dated 8th September 2021, does not make Bitcoin or another cryptocurrency a legal tender but allows the country to regulate a digital currency legally. Like El Salvador, Ukraine does not accept Bitcoin as an official form of payment.
“The development of a new industry will allow attracting transparent investments and will strengthen the image of our country as a high-tech state”, said Mykhailo Fedorov, Ukraine’s vice prime minister of digital transformation.
This law will protect the virtual asset’s owners and exchange platforms from fraud. For a long, the cryptocurrency in Ukraine has been in a grey area. It was neither considered legal nor banned due to the lack of existing laws that defined them and their usage.
Though buying and exchanging cryptocurrencies was allowed, local courts could not protect people in case of any fraud as that was not considered as legal exchange. Earlier authorities have typically regarded digital currency as a “scam”, and raided crypto-related businesses, and even seized equipment without any grounds.
The future of crypto in Ukraine
The country intends to open up the cryptocurrency market for businesses and investors by 2022, a spokesperson from the Ministry of Digital Transformation told the Kyiv Post.
Ukraine’s Minister of Digital Transformation recently stated that the country was modernizing its payment market so its National Bank could issue digital currency.
Besides Ukraine and El Salvador, the governments of Cuba and Germany may also hit the list. Panama is currently considering a draft law, so it could be the next country to regulate cryptocurrency.