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Virtual assets such as Bitcoin and tokens are now legal in Ukraine according to a new law. As of September 8, 2021, 276 Ukrainian legislators took part in the second reading. In Ukraine, bitcoin and other virtual currencies were viewed as frauds and a waste of time. As a result, crypto firms were attacked.
Despite the fact that Bitcoin is officially legal in Ukraine, Bitcoin owners are unable to utilize it as a payment method. As a result, the Ukrainian government authorizes blockchain companies to conduct individual business transactions. It’s also permitted for them to work directly with the existing financial system. For people who own cryptocurrency in Ukraine, this bill aims at clarifying the status of Bitcoin and providing protection. Bitcoin can be traded freely by corporations and investors if the Ukrainian Parliament updates the tax and civil regulations. Ukraine, on the other hand, wants to make the crypto market more transparent in order to attract more investors to the country.
In addition, the Ukrainian government plans to create other authorities that will give permissions to crypto firms. They will also provide standards for future crypto regulation in Ukraine. Too many laws, according to crypto specialists, could stifle creativity. According to them, cryptocurrency investors are fleeing Ukraine because of the excessive number of rules in place. Ukrainian digital transformation minister, Mykhailo Fedorov, says the country’s crypto-asset trading volume is $37,000 a day. Citizens of Ukraine will invest more in Bitcoin if it is legalized and made safer for them to do so.” Only a few countries in the world have legalized crypto assets — Germany, Luxembourg, Singapore. Ukraine will be one of them’’
Many Ukrainians believe that this is good news. As a result, El Salvador’s Bitcoin system may be used in the future. There’s little doubt that Bitcoin is on its way to becoming the world’s most widely used digital money. In recent years, countries have been exploring for better ways to embrace and regulate cryptocurrency.