Ukraine intends to open the crypto market for businesses and investors by 2022
Ukraine’s parliament has passed a bill to legalize and regulate crypto to attract new investment capital. Accordingly, Ukraine intends to open the crypto market to businesses and investors by 2022.
Ukraine unanimously votes to legalize, regulate crypto
The draft law legalizing cryptocurrencies was passed for the second time in the Ukrainian parliament on September 8. Up to now, Bitcoin in particular and cryptocurrency in general, which have remained in limbo, are not legal and also not banned in this country.
According to the Kyiv Post, 276 Ukrainian lawmakers voted in favor of cryptocurrency bill 3637, paving the way for a broader regulatory framework and acceptance. Once approved by President Volodymyr Zelensky, the new law will protect crypto investors and exchanges from fraudulent activities.
According to the Ukrainian Ministry of Digital Transformation, the country plans to open the cryptocurrency market to businesses and investors by 2022. However, before the implementation can begin, the parliament must pass several laws and amend the Tax Code and the Civil Code.
“It defines virtual assets as intangible assets expressed in the form of electronic data. It also explains what a wallet for virtual currency and a private key is — these terms have never been used in Ukraine’s legislation”, they stated.
If and when it is signed and approved by the President’s office, the following changes will come into play:
At present, cryptocurrencies are not used to pay for goods or services. But traders and investors can buy and sell them on domestic exchanges. The new law will allow crypto and blockchain businesses to legally operate in Ukraine as part of a plan to attract investment capital into the country. The government is also planning to set up another regulatory body in charge of licensing crypto companies.
According to Mykhailo Fedorov, Minister of Digital Transformation of Ukraine, cryptocurrency trading is increasingly popular among Ukrainians; daily volume is about 37,000 USD. According to him, only a few countries in the world have legalized cryptocurrencies, such as Germany, Luxembourg, Singapore, and now Ukraine will be one of them.
In mid-August, the Security Service of Ukraine (SBU) raided and shut down several illegal crypto exchanges charging excessive fees and commissions. It is known that a large number of customers of these illegal platforms are criminals, scammers, and even organizers of large protests. Earlier this year, the Ukrainian government partnered with Stellar Lumens to develop a CBDC and digital asset infrastructure.
It seems true as reported by AZCoin News, that after A accepts BTC, more countries will likely open to the market.
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