Ukraine Is Moving Forward With Its Cryptocurrency Adoption

Ritika Sharma
Ritika Kumari Sharma is an Economics Honors graduate from the University of Calcutta. She is completely into finance and believes that cryptocurrencies are the future. She is an enthusiast learner about the cryptocurrency and blockchain technology.
  • Three months later, in December, the Ukrainian government made cryptocurrencies payments legal but it was strictly in compliance with the anti-money laundering (AML) policies.
  • In May this year, the Ministry of Digital Transformation published a draft bill that is supposed to decide the legality and regulation of digital assets.

Back in September 2019, Ukraine had considered making cryptocurrencies legal. Three months later, in December, the Ukrainian government made cryptocurrencies payments legal but it was strictly in compliance with the anti-money laundering (AML) policies. In May this year, the Ministry of Digital Transformation (a government authority that looks over the matters related to digital assets) published a draft bill that is supposed to decide the legality and regulation of digital assets. A few days ago, the Ministry of Digital Transformation of Ukraine had announced the incorporation of Bitfury’s analytic tools to trace cryptocurrency transactions. 

Why Cryptocurrency Is Widely Preferred By Ukrainians

Clearly the cryptocurrency industry has been moving forward in Ukraine. Many believe that the country is now prepared for the much-awaited cryptocurrency adoption. Experts say that the main reasons behind this may be:

  • Ukraine has been a center for science and technology. It has given rise to many big cryptocurrency startups such as Bitfury, Hacken, and Propy. Moreover, people in Ukraine are tech-savvy and have actively sought cryptocurrency. 
  • Secondly, the political instability and the Ukrainian hryvnia losing its value in the market are major factors that drive people to find alternatives to the traditional fiat.

Ukraine Has Begun Monitoring Cryptocurrency Transactions

A few months ago, the Ukrainian government began the financial monitoring of digital assets. The law also declared the Ministry of Digital Transformation as the regulator and supervisory authority for cryptocurrencies in the country. The authority also urged the cryptocurrency users to report their profits that would be required for tax purposes. As mentioned above, the Ukrainian government has published a draft bill that would declare digital assets legal and also would describe their regulation and procedures of usage in crypto businesses. 

How Legalization Of Crypto Benefit Ukraine’s Economy

Oleksiy Feshchenko, an anti-money-laundering, and counterterrorism financing (AML/CFT) advisor said that the crypto bill of Ukraine must be worked out immediately without any further delays. The legalization of crypto assets in Ukraine would open a brand new door filled with economic incentives. For instance, regulated crypto businesses can help in generating revenues and can also support the businesses which rely on cryptocurrencies. And most importantly could potentially give rise to bigger crypto startups. Some experts believed that Ukraine’s small cryptocurrency community if properly regulated may be better in terms of organization than its government. 

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