Ukraine’s Parliament passes law to legalize crypto

The country’s regulation is part of the plan to open the crypto market for business and investors by 2022

On September 8, the Parliament of Ukraine passed a draft law legalizing and regulating cryptocurrencies and digital assets such as tokens. 

This is part of Ukraine’s plan to open the crypto market for business and investors by 2022. 

Until now, cryptocurrencies and related products are not forbidden but also not legalized. Nevertheless, from now on, once signed by the President Volodymyr Zelensky, there’ll be legal protection for owners of virtual assets and exchange platforms from frauds. 

In order for this to happen, the Ukraine’s Ministry of Digital Transformation will have the task of overseeing the implementation of the regulation and also will be responsible for guiding the industry’s growth, following “international standards”.

Talking to the news website Kyiv Post, Mykhailo Fedorov, Ukraine’s Minister of Digital Transformation, stated that

“Cryptocurrency is hugely popular among Ukrainians — the daily turnover of virtual assets in the country accounts for $37,000”.

Therefore, the consequences of the regulation will be very positive, as Ukranians will probably invest more in it.

Even though some experts may be worried about regulation and its rules, since they will be provided by the state and could possibly cause fear in some investors, Fedorov reinforced that

“Favorable conditions will allow companies to register in Ukraine, rather than abroad. The entrepreneurs will pay taxes to the budget, but will be protected by the state”. 

Global implications 

The news barely hit the outdoors of Ukraine’s Parliament and already is one of the highlights of the week. 

Following El Salvador’s adoption of Bitcoin as a legal tender, the regulation decision from the eastern european country brings attention to approximation and trust that governments are developing with cryptocurrencies services and products after all. 

The news portal BTC Manager stated:

“Cryptocurrencies are going mainstream as there has been a flurry of adoption at a global level”. 

CNBC, the American business news channel, called Ukraine “the last domino to fall” when it said

“Ukraine is the fifth country in as many weeks to lay down some ground rules for the cryptocurrency market, a sign that governments around the world are realizing that bitcoin is here to stay”.

They were referring to the previous adoption from El Salvador, Cuba’s passed law to recognize and regulate cryptos and the decisions made in the US (crypto “brokers” rules and its $1 trillion infrastructure bill) and the new German law, which allows funds to allocate up to 20% to virtual currencies like bitcoin.

Ukraine’s regulation has an international impact indeed.

The country intends to attract more crypto investors and it probably will with its new approach to cryptocurrencies.

The move means more opportunities for business and more financial freedom for users, as one by one, countries allow the digital revolution to sink in. 

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Maluh Bastos (29)

Journalist, content writer and producer - and DJ in spare times - always looking to make some noise in the world. Crypto and blockchain writer, eager to learn more every day and hoping to contribute to Klever's mission to change people's lives through financial freedom.

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