Bitcoin and Crypto Obtain Legal Status in Ukraine

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The Ukrainian Parliament has approved a bill that gives Bitcoin and other cryptocurrencies legal status.

The move follows El Salvador’s adoption of Bitcoin (BTC) as a form of legal tender and could be a sign of a growing global trend that sees nations adopting or considering adopting digital assets.

Such a plan had been under consideration for more than a year, according to the Ukrainian government. The 276-6 vote now means that only the signature of President Volodymyr Zelensky is required to certify the law.

While El Salvador has officially made BTC a currency at par with the US dollar, Ukraine’s decision is the first step towards adopting crypto, leading them on the path to recognition of its legal status.

Mykhailo Fedorov, Ukrainian Minister for Digital Transformation, discusses the forward-thinking nature of the decision.

“Only a few countries in the world have legalized crypto assets in Germany, Luxembourg, Singapore. Ukraine will be one of them.

In the United States, Bitcoin is defined as a commodity under federal law. Bitcoin is also legal in Japan, the UK, and other developed countries. However, the legal status of Bitcoin and other cryptocurrencies remains fragmented around the world.

Until now, cryptocurrencies were neither legal nor illegal in Ukraine as they had never been dealt with by the country’s legislature. The new bill brings clarity to the crypto space by providing buyers and sellers with legal parameters and judicial protection for the first time.

The crypto-friendly law could open the door to injections of foreign investment capital, as Deputy Minister of Digital Transformation Oleksandr Bornyakov explains,

“It was actually the main task for us [to] intervene and create a legal framework for banks and other government institutions to recognize [crypto] within the framework of civil rights [and] of economic value.

The guarantees for Ukrainian cryptocurrency buyers will increase due to the fact that some cryptocurrencies will be granted a permit to work in Ukraine, and therefore we will verify them and ensure that they are working in good faith.

Comments from renowned whistleblower and cybersecurity expert Edward Snowden suggest that with El Salvador in mind, early adoption is the key to success at the digital frontier.

“There is now pressure on competing countries to acquire Bitcoin, even if only as a reserve asset, as its design is a massive incentive for early adoption. Latecomers may regret having hesitated.

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Featured Image: Shutterstock / Kseniya Ivashkevich

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