Ukrainian Parliament Passes Law Legalizing Cryptocurrencies

Crypto adoption and recognition continue to boom globally. Ukraine has become the latest country to formulate strategies for the crypto market, proving that the market is finally getting attention.

The Ukrainian parliament voted in favor of a law that will legalize and regulate digital currencies. The bill was first introduced in the parliament in 2020, and it is now awaiting approval from the country’s president, Volodymyr Zelensky.

Crypto Environment in Ukraine

Previously, cryptocurrencies in Ukraine were neither approved nor disapproved. Ukrainians could trade in these assets, but financial market regulators were concerned about exchanges and firms that deal with these assets.

Law enforcement agencies have had a firm stand in fighting companies that deal in cryptocurrencies and referring to the business as fraudulent. In August, the Security Service of Ukraine (SBU) blocked the services of cryptocurrency exchanges believed to enable money laundering.

The passed law also has sections that offer protection to crypto investors. Besides, the legislatures have defined the terms virtual assets, digital wallets, and private keys, which now have a place in Ukrainian law.

However, the Ukrainian crypto law does not advocate for Bitcoin and other cryptocurrencies for payments. Besides, it does not state that cryptocurrencies will be used alongside hryvnia, the country’s legal currency.

Nevertheless, the bold move by the legislatures shows that Ukraine is headed towards a more crypto-savvy economy. In 2022, the country seeks to make the cry[to sector accessible to businesses and investors, according to a local publication.

In August, Ukrainian President, Zelensky, paid an official visit to the US, where he mentioned that Ukraine was a budding hub for the innovative digital asset sector. The statement was also supported by the country’s Minister of Digital Transformation, who said that Ukraine was embracing a modern payment market that would enable the country’s National bank to commence a digital currency rollout.

Despite this law being passed almost unanimously by the Ukrainian parliament, some crypto community members are skeptical of whether the law will be effective. “Ukraine’s improved legal status for bitcoin is a laudable symbolic measure that we progress towards a world that respects individual rights universally,” said Jeremy Rubin, the CEO of Bitcoin RD Lab Judica.

“But it is only symbolic — bitcoin seeks neither permission nor forgiveness in its mission to protect persecuted communities from unjust governments,” he added.

Governments Embrace Crypto

Ukraine is the latest country to embrace the booming crypto sector. Before this announcement, El Salvador became the first country in the world to accept Bitcoin as legal tender. The country’s president, Nayib Bukele, has been a major Bitcoin supporter, with the move attracting global attention.

Cuba has also joined the crypto bandwagon. The country recently passed a law that recognizes and regulates cryptocurrencies. The law states that the reason for the move was socioeconomic interest.

In August, the US Congress passed a controversial $1 trillion infrastructure bill that adds seeks to tax various players in the crypto sector. Germany also passed a new law that allows previously banned funds to invest a maximum of 20% in cryptocurrencies.

Panama is also joining the list of Central American countries that are going all-in on crypto. The country recently drafted a cryptocurrency bill.

The recent moves by governments worldwide show that the boom of cryptocurrencies such as Bitcoin has attracted attention, and it is now clear that the market is here to stay.

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