Ukraine legalizes bitcoin and cryptocurrencies

Ukraine is the fifth country in so many weeks to lay down some ground rules for the cryptocurrency market, An sign that governments around the world realize that bitcoin is here to stay.

In an almost unanimous vote, the Ukrainian parliament passed a law that legalizes and regulates cryptocurrency. The bill was set in movement in 2020 – and it’s going to it now bureau of President Volodymyr Zelensky.

Until today, crypto in Ukraine has existed in a legal gray one area.

Locals were allowed buy and exchange virtual currencies, but companies and exchanges die to trade in crypto were often closely monitored in monitored by law enforcement officers.

According to the Kiev Post, authorities tend to take a combative stance when it comes to: virtual cash, consider it a “scam”, raiding crypto-related companies and “often in taken into custody” expensive equipment without any ground.”

in August, for for example the security service of Ukraine (SBU) blocked a network of what it called “clandestine cryptocurrency exchanges” active in the capital city of Kyiv. The SBU claimed that these facilitated exchanges money laundering and provide anonymity of transactions.

The new legislation also spells out certain protections against fraud for die who own bitcoin and other cryptocurrencies, and in An first for the Verkhovna Rada, lawmakers have attempted to define core terminology in the world of cryptocurrencies. If signed by the President, virtual assets, digital purses, and private keys are terms that will be recorded in Ukrainian law.

Unlike El Salvador’s move this week to adopt bitcoin as legal tender, the Ukrainian crypto law does not facilitate the rollout of bitcoin like a shape of payment, it’s not there either on on an equal footing with the hryvnia, die of the country national currency.

However, today vote By the former nuclear power is a part of a wider push from Kiev to lean against bitcoin.

By 2022, the country must plans to open the cryptocurrency market to companies and investors, according to the Kiev Post. Top state officials have also have touted their crypto street credit to investors and venture capital funds in Silicone Valley.

On a official state visit to the US last month, President Zelensky spoke of Ukraine’s burgeoning “legal innovative” market for virtual assets” as a selling point for investments, and Mykhailo Fedorov, the Ukrainian minister of Digital Transformation, said the country was modernizing its payment market so that its National Bank in would be able to issue digital currency.

But to bitcoin lenders like Jeremy Rubin, Ukraine new law and political promises like this do not amount too many.

“Ukraine” improved legal status of for bitcoin is a commendable symbolic measure die we progress in the direction of a world die universally respects individual rights,” said Rubin, CEO of bitcoin R&D lab Judica. “But it’s only symbolic – bitcoin asks neither permission nor forgiveness in to be mission to protect persecuted communities from unjust governments.”

Last domino die fall

Ukraine joins by list of countries fold bitcoin go inside national law.

Just this week, El Salvador became the first country to adopt both bitcoin as legal tender and hold it on his balance. President Nayib Bukele has his political fate in being tied to the outcome of this rural bitcoin experiment.

Two weeks ago, Cuba — a notorious conservative government still set in traditional Marxist ways – passed a law to recognize and regulate cryptocurrencies, stating “reasons” of socio-economic importance.”

Last month, the US proposed: rules around crypto “brokers” in his $1 trillion infrastructure bill, and An new German law now allows funds die were not allowed to invest before in crypto to allocate up up to 20% up to virtual currencies like bitcoin.

Panama seems to be next on deck. Central American country kicks a draft of its own cryptocurrency law.

This list is hardly complete – it just it seems to be latest cartridge of dominoes fall, like more governments recognize staying power of cryptocurrencies like bitcoin.

Read More: World News

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