Lawmakers in Ukraine vote to legalize and regulate cryptocurrencies

Lawmakers in Ukraine voted in favor of a bill legalizing cryptocurrencies in the country after El Salvador made Bitcoin national currency.

Key Takeaways

  • Lawmakers in the Ukranian parliament vote in favour of legalising cryptocurrencies in the country
  • The bill was initiated back in 2020. It now awaits the President’s approval to become a law
  • Volodymyr Zelensky, the country’s president invites US investors to cash in on Ukraine’s crypto opportunity

YEREVAN (CoinChapter.com) — On September 8, 2021, lawmakers in Ukraine voted unanimously in favor of draft No. 3637 of the country’s Virtual Assets Bill. 

The newly-adopted bill regulates the crypto industry in Ukraine, giving holders of digital assets the right to exchange them legally. 

Moreover, according to the bill, international crypto companies may now register and trade in Ukraine. In total, 276 lawmakers voted for the draft. 

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The President of Ukraine is in favour of cryptocurrencies

While the cryptocurrency draft bill received the approval of the majority in the parliament, President Volodymyr Zelensky’s consent is still due. 

According to the country’s legislative laws, the Verkhovna Rada or the Supreme Council (the Parliament) passes draft bills after deliberations. After receiving the Parliament approval, the passed bill must receive the president’s signature. Only then can it be officially promulgated.

The crypto bill will likely face no opposition from Zelensky. The comedian-turned politician has been a vocal advocate of cryptocurrencies. 

While on an official visit to the United States, the Ukrainian President met with top investors, representatives of venture funds, and Silicon Valley accelerators. During the meeting, Zelensky also presented them with Ukraine’s crypto plans. 

According to a press release by the President’s office, Zelensky called his country the best magnet with blockchain and crypto specialists in Europe.

 He further stated that the IT industry in Ukraine might increase from $6 billion to $16.5 billion per year in the next three to five years. Should that happen, the IT industry in the country will account for a whopping 10 percent of the total GDP. 

“…one of the vectors of development of Ukraine’s digital economy is the launch and development of a legal innovative market for virtual assets.”

the president said. 

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Ukraine’s attraction towards crypto is nothing new

Ukraine has been flirting with blockchain and cryptos for quite some time now.

Back in 2016, some Ukrainian officials signed a memorandum to move multiple elections to the Ethereum blockchain using the E-vox platform. 

The idea did not remain on paper. A member of the Ukraine Central Election Commission even tried the technology by creating a test vote.

Earlier this year, Decrypt reported civil servants in Ukraine owned a total of 46,351 BTC. According to prices then, it amounted to $2.6 Billion. Out of that amount, just three public officials held $1.7 billion worth of Bitcoin. 

The Central Bank of Ukraine also announced plans to explore the possibility of creating a digital hryvnia. Hryvnia is the national currency of the country. The bank also launched a pilot project to start paying employees in digital currency.

Recommended: Bitcoin falls 17% as the El Salvador experiment stutters during launch.

Bitcoin on the recovery move?

Lawmakers in Ukraine voted in favor of a bill legalizing cryptocurrencies in the country after El Salvador made Bitcoin national currency.
BTCUSD on TradingView

After massive sell-offs in the last two days, Bitcoin has started showing signs of slight recovery as traders move to buy the dip. A small green candle has appeared on the daily chart, showing an increase in buying volumes. However, there are new immediate support and resistance levels that the token must test before total recovery. As the day progresses, the market will send out signs as to the direction of BTC’s movement.

With altcoins keeping the momentum going, the market might recuperate soon.

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