Today Ukraine announced that it had legalized Bitcoin and other cryptocurrencies. That is a big step for Ukraine as it joins the growing list of countries that have legalized cryptocurrency. This decision comes after years of debate and talks about the potential implications of cryptocurrency on society and the economy.
Ukraine’s Deputy Prime Minister Mykhailo Fedorov posted a tweet notification: “Today we took a step forward; Ukraine is among the 05 countries that accept cryptocurrencies”. Parliament approved the use of cryptocurrencies to protect the country’s assets from fraud and abuse.
On July 15, the Ukrainian Parliament passed a bill to legalize Bitcoin and other cryptocurrencies. That is a big step for cryptocurrency in Ukraine as it becomes the first country to legalize cryptocurrencies. The bill now goes to the president for sanction. If he signs, it will become law. That is a big win for Bitcoin and cryptocurrency supporters in Ukraine, who have long been pushing for this change.
The bill, which was approved by the Parliament’s Economic and National Security Commission, was awaiting consideration by the plenary. This move comes after months of heated debate over the legality of cryptocurrencies and their potential use in money laundering and other criminal activities.
According to Chainalysis (a data organization that studies decentralized financial systems and makes a determined effort to invest in encryption technology), the country is one of the most adopters of cryptocurrencies in the world.
Several of Ukraine’s most influential individuals are supporting cryptocurrencies. For example, Ukrainian millionaire Ihorkolomoyskyy built a vast cryptocurrency mining farm at his steel mills. He was later accused of manipulating government offers to obtain electricity at rock-bottom prices, less than 4 cents a kilogram.
According to Forbes, Kolomoyskyy ranks fourth among the wealthiest people in Ukraine. His assets total $1.8 billion. Radio Free Europe/Radio Liberty claims he could earn $3.3 million a month if his equipment ran at total capacity.
According to Ukrainian investigative firm Bihus.info in 2017, Ukrainian authorities reported that they received approximately $7 million worth of cryptocurrencies from Ukraine. The numbers have increased dramatically since then.
Yegor Chernev is a lawmaker who claims to own six Bitcoins ($253,500), and the Ukrainian claimed to have mined half of that. On the other hand, Anatoliy Urbansky, a member of the Ukrainian opposition, boasts that he has 4,000 Bitcoins ($169,000,000).
The legislation will have no impact on cryptocurrency miners, but Bojko claims it will allow cryptocurrency companies to operate in Ukraine and pay taxes legally. That could mean they will have fewer problems with the police.
Supporters of local technology fear that market control could slow its development and scare away investors. While cryptocurrency is becoming increasingly popular because it offers individuals in economic difficulties an alternative investment option, the current energy ecology of cryptocurrency is just as harmful to the human ecosystem.