Ukraine wants to build a leading jurisdiction for crypto and blockchain companies

[ad_1]

In September 2021, Ukraine implemented a paperless regime, which means that public authorities will no longer be able to demand paper documents from Ukrainians. To boost this new digital economy, the country is also planning to create a leading crypto jurisdiction for cryptocurrency and blockchain businesses.

Last month Ukraine took a major step forward and granted legal status to virtual assets. The bill was passed by the government in September. Ukraine is one of the first countries in the world to take such a rigorous approach to establishing a quality regulatory framework for the virtual asset market. The creation of state infrastructure is a key issue in the crypto space.

Ukrainians consider themselves to be a tech-savvy country, ranking in the top five in the world for the percentage of cashless payments. The country also has a strong community of blockchain developers, and Ukrainian crypto startups generated $ 171.4 million in investments from 2017 to 2019. Ukraine leads the way in crypto adoption globally.

Most of the turnover in the Ukrainian virtual asset market is concentrated in a gray area, which creates potential risks for both SOEs and users.

Many businesses in Ukraine are not afraid to operate “legally” and contribute to the economy. However, there are a number of interested companies who wish to structure and capitalize their activity by developing their activity in the “real” sector and by working with the banking system.

1

Minimum deposit

$ 50

Exclusive promotion

Over 3,000 assets, including currencies, stocks, cryptocurrencies, ETFs, indices and commodities

Buy crypto or trade cryptocurrencies via CFDs

CopyPortfolios: innovative and fully managed investment strategies

CFDs are complex instruments and come with a high risk of losing money quickly due to leverage. 67% of retail investor accounts lose money when trading CFDs with this provider. You have to ask yourself if you understand how CFDs work and if you can afford to take the high risk of losing your money.

An effective tool against corruption

Digitization in Ukraine has proven to be an effective tool against corruption. Computers do not take bribes and are much more difficult to handle. Legislation governing virtual assets has implemented the FATF recommendations on the prevention of money laundering, crime, terrorist financing and proliferation. Strengthening this legislation is the next step towards building a higher quality jurisdiction.

Regulation in Ukraine is technologically neutral and focuses only on the regulation of economic relations. The service does not regulate cryptocurrencies and tokens as a technology, rather the regulation deals with Virtual Asset Service Providers (VASPs).

The bigger question at the moment is who should be the primary regulator of the new field. On October 5, the President of Ukraine, Volodymyr Zelensky, proposed to change the market regulators. The new regulators could be either the Ministry of Digital Transformation or the National Commission for Securities and Stock Markets.

[ad_2]