The Ukrainian parliament has passed a law that legalizes and regulates cryptocurrencies. All the differences between Ukraine and El Salvador Ukraine is also open to cryptocurrencies. In an almost unanimous vote, the Ukrainian parliament adopted a law that legalizes and regulates cryptocurrencies. Launched in 2020, the bill is now headed for President Volodymyr Zelenskyy's desk for entry into force.
Until now, cryptocurrency trading in Ukraine has existed in a legal gray area: citizens were allowed to buy and trade digital coins, but the exchanges and companies involved were under close scrutiny by law enforcement, with actions that can be defined as "disturbing". This bill gives citizens "permission" to own and trade bitcoin and other cryptocurrencies. Furthermore, it also provides clarity about wallets and what private keys are. Ukraine is the fifth country in recent weeks to establish some ground rules for the cryptocurrency market. The latest was El Salvador: bitcoin has been legal tender in the South American country since 7 September. Despite the high expectations among cryptocurrency fans, the launch coincided with an 11.7% drop in the value of the currency on the day; Bitcoin's price plunged from more than $ 52,000 to $ 46,472 on Tuesday, according to CoinDesk. All the details. PARLIAMENT OF KIEV APPROVED A DRAFT LAW REGULATING CRYPTOCURRENCIES Yesterday the Ukrainian parliament approved a law that legalizes and regulates bitcoin in the country. The bill drafted in 2020 passed with a total of 276 lawmakers in favor of the law and only six against. "The development of a new industry will allow us to attract transparent investments and strengthen the image of our country as a high-tech state," said Mykhailo Fedorov, Ukraine’s Deputy Prime Minister for Digital Transformation. “Only a few countries in the world have legalized cryptocurrencies: Germany, Luxembourg, Singapore. Ukraine will be one of them, "emphasized Fedorov. LEGALIZATION OF CRYPTOCURRENCIES IN UKRAINE The main purpose of this bill appears to provide clarification on the virtual asset and protect those who own bitcoins, as cryptocurrency was neither legal nor illegal in the country so far. The new legislation allows citizens of Ukraine to own and trade bitcoins and other cryptocurrencies. With parliament's green light for this law, courts can now adequately protect individuals and companies, as it provides fiscal clarity and officially allows cryptocurrency companies to operate within the country. It also sets out some guidelines on how Ukraine could try to regulate bitcoin more in the future. If President Zelenskyy signs the bill, virtual goods, digital wallets and private keys will be terms enshrined in Ukrainian law. BUT ATTENTION: BITCOIN HAS NO LEGAL COURSE IN THE COUNTRY It is important to note that even though bitcoin is now legal in Ukraine, it does not mean that the cryptocurrency is legal tender in the country, like in El Salvador. Unlike El Salvador's decision to adopt bitcoin as legal tender, the Ukrainian law on cryptocurrencies does not facilitate the launch of bitcoin as a form of payment and does not place it on an equal footing with the hryvnia. national currency of the country. This will require a completely different process, Euronews points out. HOW OTHER STATES ARE MOVING WITH DIGITAL CURRENCIES More and more countries are moving towards the legalization of cryptocurrencies. Just this week, El Salvador became the first country to adopt bitcoin as legal tender and keep it on its balance sheet. However, the launch of Bitcoin in El Salvador has been somewhat turbulent. El Salvador's president Nayib Bukele's Bitcoin bet resulted in a sell-off of long-dated Salvadoran bonds as well, increasing yields and adding new pressure to the country's debt market. The launch also led to an explosion of protests across the country. Two weeks ago, Cuba passed a law to recognize and regulate cryptocurrencies, citing "reasons of socio-economic interest". Last month, the United States proposed rules on cryptocurrency "brokers" in its $ 1 trillion infrastructure bill, and a new German law now allows funds previously excluded from investing in cryptocurrencies to allocate up to 20% in virtual currencies such as bitcoin. In Central and South America, Paraguay and Panama could be next to follow El Salvador's path, Fortune wrote. Paraguay has been working on a bill for several months to create a licensing environment for cryptocurrencies. And the Central American country is drafting its own cryptocurrency law. • September 10, 2021