Ukraine's parliament today voted to legalize cryptocurrencies in the country and to have cryptocurrency exchanges officially operating in the country.
Cryptocurrencies, including bitcoin, have so far been recognized in the legal region of Ukraine, Europe's seventh most populous country. Nevertheless, Blockchain data company Chainalysis ranked Ukrainians as the top recipients of cryptocurrencies in the world in September 2020.
If the bill is signed, banks will be able to seize the accounts of cryptographic companies, while its citizens will have legal protection in the event of theft.
The Ministry of Digital Transformation, established in 2019 to improve digital literacy and online access, drafted the law and will be responsible for enforcing the law, which is expected after the tax law is amended and signed by the president. This law will be implemented in the fall of this year.
According to the International Monetary Fund (IMF) in 2019, Ukraine's nominal GDP is not commensurate with its population and ranks 23rd out of 46 countries. The ministry wants to increase this number by attracting encrypted jobs.
"In particular, the adoption of specialized legislation is going to stimulate the attraction of foreign exchanges to the Ukrainian market," said Deputy Minister Oleksander Bornyakov in a press release shared with Decrypt. "It will become a powerful incentive for the further development of the crypto-sphere in Ukraine."
That's especially important in Eastern Europe, where crypto adoption is high if not, strictly speaking, always legal or regulated. In its report, Chainalysis noted high degrees of corruption and asset seizure in Ukraine, as well as falling trust in banks. Citizens have turned to cryptocurrency to protect their assets, sending $8.2 billion in crypto last year. Regulated exchanges and crypto businesses could drive that number upward.
The Ministry of Digital Transformation has been working in the field of cryptocurrency for months. In January 2016, an agreement was reached with the Stellar Development Foundation to develop a national digital currency of the Central Bank, the virtual version of the hryvnia, which the National Bank of Ukraine began research four years ago. As part of the agreement, which the ministry has identified as a way for the country to become more competitive in the Eastern European market, Stellar will help develop the regulation and infrastructure of cryptocurrencies.
Souce:
https://decrypt.co/80514/bitcoin-hungry-ukraine-moves-legalize-cryptocurrency
