Ukraine has now legalized Bitcoin and cryptocurrencies after the country’s parliament approved a final reading of the “Law on Virtual Assets” bill.
The law will provide a legal framework, overseen by the National Securities Commission (NSC), covering all aspects to do with investing in this asset class.
Deputy Prime Minister and Minister of Digital Transformation Mikhail Fedorov said the new law would open up business opportunities in Ukraine, which infers an intentional move to diversify from its traditional mining and agriculture industries.
“The new law is an additional opportunity for business development in our country. Foreign and Ukrainian crypto companies will be able to operate legally…“
Global authorities have largely dragged their feet on implementing legal crypto frameworks. The matter becomes further confused with talk of central bank digital currencies and how they might operate alongside private offerings.
Nonetheless, Ukraine’s passing of the Law on Virtual Assets represents a massive coup for the cryptocurrency sector. Representing a step in the right direction as far as digital asset acceptance is concerned.
Ukraine moves to legalize Bitcoin
Following on from the crypto draft bill proposal, first mentioned in the summer of 2021, Bitcoin and cryptocurrencies are now legal in Ukraine.
Under the Law on Virtual Assets, crypto companies can operate legally subject to oversight from the NSC. The NSC is tasked with developing appropriate policies, managing a licensing system for service providers, and financial monitoring.
The new law also covers market participants, who will now receive legal protection, and have the opportunity to engage with authorities, presumably to petition changes to the legal framework.
Deputy Minister of Digital Transformation Alexander Bornyakov said the growth of cryptocurrency is way ahead of traditional sectors of the economy. The Law of Virtual Assets allows Ukraine to expand economically and position itself as a leader in this space.
“In Ukraine, the virtual asset market can become a powerful sector of the digital economy. Thanks to the adopted Law, we have every chance to be a leading country for business development in this innovative field.”
Ukraine-Russia crisis ongoing
U.S President Joe Biden has warned that Russia is set to invade Ukraine, with intelligence reports suggesting this could happen under the pretense of a “false flag” event.
Aljazeera says Ukrainian forces and Russian-backed separatists have today exchanged fire, violating previous ceasefire agreements.
Last week, Russia made a massive U-turn on Bitcoin as it shelved plans to ban cryptocurrencies. The Russian government and central bank now recognize Bitcoin as a currency.
It’s speculated that the move was motivated by the threat of sanctions, which, if implemented, would cut Russia off from access to U.S dollars.
With reports of an imminent war, the timing of the Law on Virtual Assets seems somewhat unusual. But regardless of what may happen next, cryptocurrency is proving itself impartial as both sides turn to it for different reasons.
