Bitcoin Legalized in Ukraine, the Latest Country To Adopt Crypto

Ukraine has passed a law allowing virtual assets like Bitcoin and tokens in Ukraine. A total of 276 Ukrainian lawmakers voted during its second reading on September 8, 2021.  

In Ukraine, bitcoin and other virtual currencies were considered scams. This led to attacks on crypto businesses.

Although Bitcoin is now legal in Ukraine, Bitcoin owners cannot use it as a means of payment. However, Ukraine allows blockchain companies to process individual businesses. They are also allowed to work directly with the existing banking system. 

The Bill aims to clear the status of Bitcoin and give protection to those who own crypto in Ukraine. If the Ukraine Parliament amends the tax and civil codes, firms and investors can trade Bitcoin freely. Ukraine, however, wants to make the crypto market more transparent, thereby, pulling more investors into Ukraine.

Furthermore, the government of Ukraine wants to set up other regulators that will issue permits to crypto companies. They will also set guidelines for how Ukraine will regulate crypto in the future.

Crypto experts seem worried that too many rules could restrain innovation. They believe that crypto investors are leaving Ukraine because of too many regulations.

The volume of crypto-assets traded in Ukraine each day is $37,000, according to Mykhailo Fedorov, the country’s digital transformation minister. Citizens of Ukraine will invest more in Bitcoin if it becomes legal and safer.

Mykhailo Fedorov also stated,

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

Many believe that this is great news for Ukraine. This may later lead to the use of a total Bitcoin system similar to that of El Salvador. Bitcoin seems to be well on the way to becoming the world’s major digital currency. Countries are now looking for better ways to accept and regulate crypto.