Ukrainian parliament finally passed a bill that was set in motion in 2020 to legalize and regulate cryptocurrencies. In a unanimous vote, 276 members have now approved the bill for execution as Ukraine opens up to cryptocurrencies.
Cryptocurrencies in a Gray Area
Ukraine joins a select group of countries to finally acknowledge the popular demand for crypto. This is an indication of governments realizing the potential as well as the inevitability of cryptocurrencies. Before this event, investors in Ukraine did have access to decentralized platforms and exchanges. However, authorities generally maintained a hostile stance towards crypto according to Kyiv Post.
This was an effort to achieve better legal transparency and attract investments in the country. Essentially, the passing of the bill can be interpreted as a constructive move towards the market. Considering the national scale, skeptics will lose their legal leverage since the new legal structure allows for crypto-related activities.
The Good and the Bad
Initially, this law could better serve to protect customers from fraudulent activities. more importantly, investors and institutions will have an easier time knowing that their endeavors are within a defined legislative space.
On the other hand, a more defined legal status could mean a strong apparatus for imposing taxes. Despite the fact that many of the details remain unclear, the notorious tax rates in the European Union will not make exception for cryptocurrencies.
The Big Push for cryptocurrencies
In August, in a visit to San Francisco President Zelenskyy urged investors to actively cooperate with Ukraine. He spoke of an upcoming “launch and development of a legal innovative market for virtual assets,”.
Considering the situation, it seems Ukraine is seeking to attract foreign investors to the country by providing a more liberal legal structure toward cryptocurrencies.
Surely, the latest bill does not go as far as allowing cryptocurrencies to be used as legal tender. However, it could be the beginning of an elaborate financial plan to serve as a magnet for investors abroad.
The Global Acceptance
In the past few weeks, four countries have made legislative efforts to legalize and regulate cryptocurrencies.
El Salvador is a step above the rest as they have officially accepted Bitcoin as legal tender. Cuba of all countries, passed a bill to regulate and legalize cryptocurrencies. Panama appears to be following the footsteps of El Salvador aiming to become a pioneer. Germany recently has allowed institutions to hold as high as 20% of their investments in virtual assets.
Cryptocurrencies are on the rise, they are serious in function both for people and institutions alike. The latest wave of legalization is an indication of the inevitability of crypto.
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