William Malcolm

Ukraine Has Legalized Bitcoin

Kyiv has legalized bitcoin, the bill was almost unanimously approved by parliament, the Kyiv Post reports. In recent weeks, Ukraine has become the fifth country to set rules for the cryptocurrency market. The proposal will now go to President Volodymyr Zelensky.

The government dealt with the proposal last year. However, cryptocurrency transactions have so far been on the brink of law in Ukraine. Although residents were allowed to buy and exchange virtual currencies, companies and exchanges dealing with cryptocurrency were often under the strict supervision of the authorities.

According to the Kyiv Post, the Ukrainian authorities have long been involved in fraud or robbery of owners of bitcoins and other cryptocurrencies. For example, in August, the Security Service of Ukraine (SBU) blocked a network of “secret cryptocurrency exchanges” operated by fraudsters in the capital. According to the SBU, they ensured the anonymity of transactions and participated in money laundering.

The new legislation, therefore, provides, as a matter of priority, some protection against such fraud. If the president signs it, terms such as virtual assets, digital wallets, and private keys will also be added to Ukrainian law.

Unlike El Salvador, which adopted bitcoin as legal tender this week, Ukrainian law does not place it at the level of the official currency, ie the Ukrainian hryvnia.

According to the Kyiv Post, the country plans to open the cryptocurrency market to businesses and investors by 2022. Top officials also offered their cryptocurrency credits to investors and venture capital funds in Silicon Valley.

By adopting bitcoin, the government also promises to make more efficient use of the current surplus of electricity. As the daily E15 previously wrote, a farm for the extraction of bitcoins is soon to be established in the largest European nuclear power plant in Zaporizhzhia. More should follow at the three remaining Ukrainian nuclear power plants.