Another country legalizes Bitcoin
Another country legalizes Bitcoin
Ukraine is the fifth country to have passed a law to legalize and regulate cryptocurrencies. More and more countries around the world are accepting the existence of Bitcoin.
According to CNN, the Ukrainian parliament passed a law on the legalization and regulation of cryptocurrencies after a unanimous vote. The law is signed by President Volodymyr Zelenskyi.
Previously, Ukrainians were allowed to buy and exchange cryptocurrencies. However, companies and exchanges are often closely monitored by law enforcement agencies.
In August, the Security Service of Ukraine (SBU) banned a network in the capital, Kiev, calling it an “underground cryptocurrency exchange”. The SGE claims that such exchanges facilitate money laundering and make these transactions anonymous.
The new law provides fraud protection for owners of Bitcoin and other cryptocurrencies. For the first time, legislators at the Verkhovna Rada decided to define key terms in the crypto world such as crypto assets, digital wallets and private keys.
The new Ukrainian law provides fraud protection for owners of Bitcoin and other cryptocurrencies. Photo: Reuters.
In contrast to this week’s move from El Salvador, Ukraine’s cryptocurrency law does not facilitate the implementation of Bitcoin as a means of payment. Cryptocurrencies are also not equated with national currencies.
On September 7th, El Salvador officially legalized Bitcoin. Businesses need to accept payments for goods and services through Bitcoin. The government also accepts paying taxes in this cryptocurrency.
However, Kiev’s vote is part of a wider effort to drive Bitcoin adoption. According to Kyiv Post, the country plans to open the cryptocurrency market to businesses and investors by 2022.
Senior Ukrainian officials also proudly spoke to Silicon Valley investors about their trust in cryptocurrencies. During his official visit to the US last month, President Zelensky named Ukraine’s “legitimate innovation market for digital assets” as a bright spot for investment.
Ukraine’s Minister of Digital Transformation, Mr Mykhailo Fedorov, also confirmed that the country is modernizing the payments market. According to him, this will allow the central bank to issue digital currencies.
Ukraine isn’t the only country that includes Bitcoin in national law. El Salvador’s President Nayib Bukele also relied on a nationwide Bitcoin test.
More and more governments around the world are accepting the existence of bitcoin and cryptocurrencies. Photo: Reuters.
The country’s government has sponsored the adoption of bitcoin through a bitcoin wallet called Chivo. Funds are available to users who register with an ID number 30 USD in the wallet. Bukele’s administration also installed 200 bitcoin ATMs across the country. Users can exchange cryptocurrency for USD.
The Ministry of Finance of El Salvador is creating a fund worth 150 Million dollars at the State Bank of the Banco de Desarrollo de la Republica de El Salvador (Bandesal) to facilitate transactions.
The plan is the product of the 40-year-old President of El Salvador. He believes this will attract more people into the financial system and reduce the cost of remittances. “It’s the bravery of the new world,” says Garrick Hileman, Head of Research at Blockchain.com (based in Miami).
“With this decision we are being led to a new sea. But I’m happy that the pilot is unfolding as a whole. We can learn a lot from it, ”he added.
Cuba passed a law two weeks ago that recognizes and regulates cryptocurrencies on the basis of “socio-economic benefits”. Legislators in other countries like Panama and Uruguay have also proposed similar laws.
Last month, the US proposed rules for cryptocurrency brokers. Changes in the spending plan 1,000 yen Billion USD for infrastructure. Funds in Germany that were once banned from investing in cryptocurrencies are now also allocated up to 20% of their portfolios to digital assets such as Bitcoin.
According to CNN, these are just the first dominoes. Because more and more governments are recognizing the existential power of cryptocurrencies like Bitcoin.