Ukraine Legally Embraces Cryptocurrencies? What Does it Mean for Bitcoin?

7:26 am, Fri, 10 September 21

September 7th, 2021 marks the day when El Salvador became the first country to adopt the flagship crypto asset as a legal tender. Some crypto enthusiasts and analysts including Cardano’s creator Charles Hoskinson stated that this initiative might inspire other countries to follow in the same footsteps.

According to reports, Hoskinson’s speculation seems to be materializing in some shape or form as Ukraine is set on legalizing and regulating Bitcoin and other crypto assets in the country.

The initiative taken by the Ukrainian Parliament is different from that of El Salvador. However, it is nevertheless important for Bitcoin and the overall crypto market.

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What to Know About Ukraine’s Crypto Initiative?

Ukraine is not exactly aiming to adopt Bitcoin or any other digital asset as a legal tender. This means that the Ukrainian hryvnia will remain the national currency.

However, the parliament is trying to create a more crypto-friendly environment in the country that will also enable foreign exchanges to operate. The bill was drafted and a total of 276 lawmakers in Ukraine voted for it on September 8th.

It was then sent to Ukrainian President Volodymyr Zelensky and has now been adopted by the Ukrainian Parliament.

Digital currencies were not entirely illegal in the country, however, they were in a legal grey area and were not recognized by any of the legislative arms in Ukraine.

Thanks to the crypto bill, digital assets are being legally recognized in the country, which is anticipated to bring a lot of opportunities.

According to the new bill, cryptocurrencies are defined as intangible assets that are expressed in the form of electronic data. The bill also explains numerous other aspects that weren’t a part of the Ukrainian Law, such as digital wallets and private keys.

At the moment, the crypto bill will enable the trading or exchange of crypto assets by using both foreign and local crypto exchanges.

Once the bill is approved and becomes a law, it will become significantly easier for the crypto businesses to be registered.

The Minister of Digital Transformation in Ukraine, Mykhailo Fedorov, stated that regulating digital currencies in the country can open new doors of opportunities for them. It can make them more appealing and safer to the audience.

He added that the crypto law is a way of modernizing the payment market in the country. This would enable the National Bank to issue its cryptocurrency.

Can it Elevate the Significance of Bitcoin?

Bitcoin is the largest and most significant cryptocurrency in the world and despite facing some price corrections it is still trading above the $40,000 price mark.

Here is a graph by CoinGecko that shows the price fluctuations of BTC over the past month.

btc-graph-10-09-2021

Many crypto enthusiasts and analysts expected the price of Bitcoin to shoot through the roof after it was adopted officially by El Salvador. However, that was certainly not the case, in fact, the price of BTC was seen to drop after the law was implemented.

Therefore, whether Ukraine’s crypto law will make a difference in the price of the flagship crypto asset or not is yet to be seen. Its value could, however, become more prominent than before for countries around the world.

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