radianlcd: Ukraine passes law giving legal status to cryptocurrencies and other virtual assets

 Radianlcd noted that Ukraine became the fifth country in the past few weeks to set ground rules for digital currencies after El Salvador recognized bitcoin as legal tender on September 7, a day before the Ukraine bill was passed.




On September 8, 2021, the Ukrainian Parliament voted to pass Law No. 3637 on Virtual Assets, which gives cryptocurrencies and other virtual assets such as virtual hryvnia and tokens legal status. Radianlcd learned about entrepreneur Mykola Udianskyi, who has worked in the local market for a long time and organized several successful startups, including one of the top cryptocurrency exchanges Bitcoin and BTC forked Bitcoin ultimatum, to talk about how this will How to influence the Ukrainian crypto community. Udianskyi said the new draft law would boost international trade as it would allow specialized foreign companies to cooperate with Ukrainian banks and invest in the industry.



“The bill considers the entire spectrum of virtual assets, not just cryptocurrencies, as a similar law issued by Russian lawmakers last summer, for example, did just that,” Udianskyi said. “The bill passed by Rada defines the basic concepts related to virtual assets, which is very important, because in this way, these assets are included in the legal field. Most importantly, the bill contains a list of service providers in the field of virtual assets and their Registration procedure. This made it easier for serious companies to enter the Ukrainian crypto market. Personally, if this certainty and support existed in the Ukrainian legal field at the time, it would have been much easier for me to start my journey as an entrepreneur.”



The updated draft law was first submitted for public discussion in May 2020 as an addition to previously passed laws implementing FATF’s anti-money laundering and terrorist financing standards. Ukrainian crypto enthusiasts and entrepreneurs first criticized the bill, but in December, after several amendments, it was passed in first reading. In June 2021, the updated text of the draft law "on virtual assets" was published on the Verkhovna Rada's website. According to the document, exchanges must obtain a special license from financial regulators, while users of crypto trading platforms must go through KYC procedures. The Ukrainian Ministry of Finance said the process of approving blockchain service providers will be simplified, automated and remote.



The law defines virtual assets as an intangible commodity that is the object of civil rights, that is, they are not property. Also, virtual assets are not considered a means of payment in the country.



The document also describes the categories of financial VAs. They allowed the Ukrainian residents to be released. They can be secured by monetary value - in this case, turnover is regulated by the National Bank (NBU) and securities or derivatives - these are regulated by the National Securities and Stock Market Commission (NCCBFR). The law will come into effect following the passage of amendments to the tax law regarding the taxation of virtual asset transactions. However, since the document has not yet been passed, the law is likely to be implemented no later than a year.



Ukraine became the fifth country in the past few weeks to set ground rules for a digital currency after El Salvador conceded Bitcoin on Sept. 7, the day before the Ukraine bill was passed, making it legal tender. The country’s government has set up a special fund to ensure the exchange of bitcoin and US dollars. Fast food chains such as Pizza Hut and McDonald's Starbucks El Salvador immediately began accepting bitcoin payments.



“I am sure Ukraine is not the last country to give cryptocurrencies legal status,” Mykola believes. “Certainly, Ukraine has not reached the level of El Salvador, which accepts Bitcoin and USD as official payment methods. The new bill simply prohibits the use of cryptocurrencies to pay for goods and services. However, I think we will see a domino effect in the next few years, countries One by one, cryptocurrencies will be incorporated into their monetary policies, and central banks will start buying Bitcoin as part of their reserves. Paying with cryptocurrencies is easy and simple as it has no restrictions and no high commissions as a percentage of the payment amount "In Bitcoin, you can transfer billions of dollars with one click in minutes, paying extremely cheap transfer fees compared to the amount you would have to pay in a regular transfer."

The reality is that governments are starting to buy cryptocurrencies for their reserves. The Ukrainian and Bulgarian governments purchased 46,531 BTC and 213,519 BTC, respectively, as reserves, according to Global Purchases of Bitcoin. Collectively, they own 1.237% of all issued BTC in the world, Radianlcd added.


RaDianlcd：www.radianlcd.com
net.radianlcd.com

评论

发表评论

此博客中的热门博文

Radianlcd：Central Banks Hoard Cash in Case They Need to Save Their Currencies

图片
 # radianlcd ： Central banks around the world are swapping their stockpiles of US Treasuries for cash -- just in case they need to intervene in markets to bolster their currencies. Foreign monetary officials purged $29 billion in Treasury securities in the week ended Oct. 5, bringing the four-week decline in holdings to $81 billion, according to Federal Reserve data. It’s the most-extreme outflow since the beginning of the pandemic in March 2020, leaving total holdings at $2.91 trillion. With the US dollar stronger than ever and recession risk rising, it’s little surprise that central bankers are stocking their cash coffers. Policy makers from Tokyo to Santiago have already stepped into foreign-exchange markets to prop up their currencies with improvised solutions, such as selling dollars directly into the market. Still, “much of the foreign official selling in September appears to have been precautionary,” Wrightson ICAP (LON:NXGN) economist Lou Crandall wrote in a note to clients...
阅读全文

radianlcd: Yen Eyes Worst Level in 32 Years on Hotter-Than-Expected Inflation

图片
  Radianlcd： The Japanese yen continued to weaken against the dollar on Thursday, nearing its weakest level in 32 years as a hotter-than-expected inflation reading added to pressure from rising interest rates across the globe. The yen fell as far as 146.93 to the dollar, coming just a few points short of its weakest level since 1990. The currency took little support from warnings by Japanese policymakers against selling the currency, moving past levels at which authorities had intervened in currency markets last month. Data on Thursday showed Japanese PPI inflation blew past expectations in September, hovering around its highest levels in 41 years as rising raw material costs continued to weigh on local businesses. The figure heralds a similar rise in Japanese CPI inflation data due next week, given that most businesses have taken to passing on high material costs to their customers. Japan’s consumer price index is currently trending at an eight-year high. Still, rising inflation h...
阅读全文

radianlcd：BOJ's Kuroda warns against fast, one-sided yen falls

图片
  #Radianlcd Bank of Japan Governor Haruhiko Kuroda said on Wednesday fast and one-sided moves in the yen would be bad for the economy, signalling the speed of its fall - rather than levels - was the key concern for policymakers as the currency plumbs fresh 24-year lows. Kuroda also said the dollar's broad-based gains will likely be among the key topics of debate at this week's G20 and International Monetary Fund (IMF) meetings in Washington. "Probably in Washington D.C. this time, lots of emerging economies will complain about the almost universal rise in the dollar against other currencies," which made them raise interest rates more than deemed appropriate for their economies, he said at an annual meeting of the Institute of International Finance. The dollar hit a fresh 24-year high of 146.80 yen on Wednesday after the release of U.S. producer price data that was stronger than expected. It is now above levels, just near 146, that triggered Japan's currency inter...
阅读全文