Ukraine new crypto law could boost trading, some would rather it stayed in the shadows. For years, cryptocurrency trading in Ukraine has been conducted in the shadows. Because no regulations have been enacted to define the purposes. For which virtual tokens such as Bitcoin may be used. This, however, is about to change dramatically.
In September, the Ukrainian parliament passed a law that will legalize and regulate the sector. As well as prohibit the use of cryptocurrencies, which will henceforth be considered. Non-monetary assets under Ukrainian law. In the end, it will make it possible for cryptocurrency businesses. To trade lawfully and pay their taxes.
Despite the fact that the law has referred back to parliament for amendments. By President Volodymyr Zelenskyy, it anticipated to pass again. Before the end of the year. The law now prohibits the use of cryptocurrency in payment for goods and services.
Oleksandr Bornyakov, deputy minister for digital transformation, told Euronews Next. That while the move will be a first step towards a crypto-inclusive future. It will be a necessary one.
“The cryptocurrency industry is a global enterprise, and we want to be a part of that global economy. However, in order to be a member of the global economy. You must adhere to a set of norms that everyone must follow.” In reference to how Ukraine will comply with anti-money-laundering organizations. Such as the Financial Action Task Force, Bornyakov stated that (FATF).
Ukrainian cryptocurrency enterprises, on the other hand. Have thrived in the absence of government oversight. A study conducted by the software company Chainalysis found. That Ukraine was among the top ten countries earning the most money. From Bitcoin trading in 2020. Ukraine was rank third in the study.
The ministry considered Ukrainian firms and dealers
Bornyakov claims that when drafting the law, his ministry kept Ukrainian businesses. And traders in mind, and he believes that the sector. Will benefit from it. This is partly because the law makes it possible for cryptocurrency businesses. To open bank accounts in Ukraine, but more importantly. Because it fosters confidence in the Ukrainian crypto market.
Deputy Prime Minister Boris Bornyakov stated. “We want to trusted, and we want our banking system to trusted.”
In order for Ukrainian firms to be able to attract investments or have people from the European Union. Become customers of their platform or service, we want European Union government organizations. And regulatory bodies to trust our licenses and Ukraine New Crypto.
Risks of corruption
If the bill passes, crypto traders will need to register. And report their financial activity to the government. Ukraine’s Remme blockchain business CEO Alex Momot. Sees both benefits and drawbacks to the new legislation.
“Connecting to the financial system will be helpful and important. For the local players in Ukraine,” said Momot.
“But I am worried. I don’t think lawmakers fully grasp the potential of the Ukrainian crypto sector. And creating a legislation allows them to cause harm later “.
Momot believes that many blockchain startups and cryptocurrency dealers in Ukraine. Which can and will swiftly relocate to countries like Portugal or Dubai. Ukraine’s administration would have to be very cautious.
“No regulation is typically better,” added Momot. Referring to Ukraine’s lengthy history of corruption and perceived biased legal system.
“On the other hand, a relationship to the financial industry and certain simple norms are vital. But too much will disadvantage local players.”
A new rule could force numerous enterprises out of Ukraine new crypto. This is according to Blockchain Association of Ukraine founder Michael Chobanian.
“I’m not against the law,” Chobanian replied.