Ukrainian Government Moves To Regulate Cryptocurrencies

Ukraine has become the latest country to outline rules for regulating Bitcoin and other cryptocurrencies.

In a nearly unanimous vote, the Ukrainian Parliament adopted a law that legalizes and regulates cryptocurrencies. The bill was first introduced in 2020 – and it now heads to the desk of President Volodymyr Zelensky for his signature.

Ukraine is the fifth country in as many weeks to lay down rules aimed at officially governing the cryptocurrency market, in a sign that governments around the world are realizing that Bitcoin is likely here for good.

Until now, cryptocurrencies in Ukraine had existed in a legal gray zone. Local citizens were allowed to buy and exchange digital coins and tokens but companies and exchanges dealing in cryptocurrencies were often under close watch by law enforcement.

The new government legislation spells out certain protections against fraud for people who own Bitcoin and other cryptocurrencies, and lawmakers have also taken a stab at defining core terminology in the world of cryptocurrencies. If signed by the president, virtual assets, digital wallets, and private keys are terms that will be enshrined in Ukrainian law.

Unlike El Salvador’s decision earlier this week to adopt Bitcoin as legal tender, Ukraine’s cryptocurrency law does not facilitate the rollout of Bitcoin as a form of payment, nor does it put it on an equal footing with the country’s national currency.

However, by next year (2022), Ukraine plans to open the cryptocurrency market to businesses and investors.