Ukraine Passes Bill to Legalize Bitcoin to Allow Crypto Legal Protections to Citizens

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Cryptocurrencies being a legal gray area in Ukraine, may soon come to an end. As the world’s first Bitcoin adopter, Ukraine has passed a bill to legalize crypto in the country. Banks could support digital asset business accounts, while citizens would see their crypto assets legally protected.

The Ukrainian government may soon legalize cryptocurrencies as a bill has been passed to allow banks to accept accounts from digital asset companies. If the bill were enacted, citizens holding the new asset class could be protected in the event of theft.

Ukrainians are the first users of cryptocurrencies

Until now, bitcoin and other cryptocurrencies have been in a legal gray area in Ukraine, despite being the country that adopted digital assets the most in 2020.

The bill, drafted by the Ministry of Digital Transformation, is expected to enter into force in the coming months after the president signs the new legislation. The tax code is also expected to be amended before the bill is passed.

The bill states that the law will regulate legal relations in relation to the turnover of cryptocurrencies in the country. In addition, it will also describe the rights and obligations of players in the digital asset market.

Unlike El Salvador’s recent decision to adopt Bitcoin as legal tender, Ukraine’s new legislation does not include the gateway for cryptocurrencies to be used to pay for goods and services.

However, Ukrainians could freely buy and trade cryptocurrencies, and blockchain companies could work directly with the current banking system.

So far, crypto legislation has been passed, with 276 lawmakers supporting the law, while only six were against the bill.

The main motive of the bill appears to be to protect those who hold Bitcoins and other digital assets and to clarify its legal position in the country. The country’s law enforcement previously viewed cryptocurrencies as a scam, which resulted in raids on crypto companies.

Cryptocurrency exchanges could operate legally in the country.

Bitcoin price is not rebounding on the horizon

The price of Bitcoin continues to retrace after the stock market crash that pushed the major cryptocurrency below $ 43,000. BTC is struggling to find support as it drops to mark the 12-hour simple moving average (SMA) of 100, which sits near the 50% Fibonacci retracement level at $ 44,121.

Currently, the 50 twelve-hour SMA and 61.8% Fibonacci retracement level acts as strong resistance to the price of Bitcoin. Accompanied by accelerated selling pressure, BTC needs to hold above the aforementioned support to avoid falling.

12-hour BTC / USDT chart

Further support could come at the July 31 high of $ 42,608 before Bitcoin risks collapsing towards the 38.2% Fibonacci retracement level at $ 40,506.

While a recovery is far away, if the bulls consider reversing the period of underperformance, slicing above the trendline of diagonal resistance at $ 50,000 could see the price of Bitcoin aiming for a fall. greater aspirations.

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