Ukraine Passes Crypto Law to Legalize Bitcoin

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(Kitco News) – Ukraine is on track to legalize Bitcoin and other cryptocurrencies after parliament overwhelmingly passed a new digital asset law.

The bill on virtual assets is still awaiting the signature of President Volodymyr Zelensky.

The legislation, which was originally drafted in September 2020, offers better protections for investors and businesses against fraud. Ukrainian Minister of Digital Transformation Mykhailo Fedorov told the Kyiv Post that more locals will invest in Bitcoin if the cryptocurrency becomes legal and therefore more secure. Ukraine is the latest in a series of countries that have decided to integrate Bitcoin into the economy.

Last 4 weeks:

Cuba ???? – Legalized BitcoinUkraine ???? – Legalized BitcoinPanama ???? – Bill presented to legalize BitcoinEl Salvador ???? – Adopted BTC as legal tender

We’re just getting started ???? pic.twitter.com/FFEwloTszy

– Blockworks (@Blockworks_) September 8, 2021

Ukraine’s Bitcoin law received approval from 276 members of parliament on September 8, representing close to 100% support. The law shouldn’t be too shocking given President Zelenskyy’s recent trip to Silicon Valley, where he met with investors and venture capitalists to tout Ukraine’s digital economy from a cooperative perspective.

Bitcoin bill

Prior to this bill, Ukrainians largely received mixed signals about cryptocurrencies such as Bitcoin. Investors have been free to trade on cryptocurrency exchanges. At the same time, companies, including trading platforms, were seen as suspicious by authorities. On the contrary, cryptocurrency firms have been the target of “unwarranted raids” in which equipment was seized by Ukrainian law enforcement authorities, who are known to doubt the validity of digital assets, according to the Kyiv Post.

With the new law, the regulations are clearer, but Ukraine is forging its own course and doing things differently from El Salvador. Ukrainians will not be allowed to use Bitcoin as legal tender. This role is reserved for the local fiat currency, the hryvnia.

What Ukraine is doing is paving the way for businesses and investors to use cryptocurrencies by 2022 with greater protection against fraud, the first step of which is the bill. Crypto companies will need to obtain a license and will also have to pay taxes in Ukraine. Lawmakers must now give the green light to other supporting laws and make changes to the Tax Code and the Civil Code.

The cryptocurrency community is emboldened as the world becomes more and more cryptocurrency friendly. However, Ukrainian law has done little to increase the price of Bitcoin, which remains lower for the week and below the psychologically significant level of $ 50.00.

Disclaimer: The opinions expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure the accuracy of the information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is for informational purposes only. This is not a solicitation to trade in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article accept no responsibility for any loss and / or damage resulting from the use of this publication.

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