Crypto adoption is fast spreading across the world, given countries are starting to recognize and regulate Bitcoin. Today, the Ukrainian parliament has reportedly approved a bill on “Virtual Assets” that legalizes Bitcoin and other cryptocurrencies in the country. This would make Ukraine a crypto-friendly nation. However, unlike El Salvador, digital currencies won’t be used for payment or exchanged for goods or services.
Ukrainian Parliament Votes for Crypto Regulation
Previously, Ukraine didn’t have any law guiding or prohibiting residents from holding or engaging with digital currencies. This also means that the citizens don’t have any form of protection from the government or local courts should anything go wrong with their crypto assets. However, this is changing today as the Ukrainian parliament has voted to regulate crypto.
The virtual assets bill was passed on September 8 in the second reading. According to reports, about 276 Ukrainian lawmakers voted in support of the law. This law will provide much-needed protection for citizens against fraud while also introducing guidance for crypto regulation in the country.
Although the Ukrainian parliament has voted to legalize cryptocurrency, only the national currency, the hryvnia, is allowed for payments. Ukrainians cannot use Bitcoin or other cryptocurrencies as a means of payment or exchange for goods and services. However, they are legally backed for holding, trading, and investing in cryptocurrencies.
The development also comes as a big boost to the crypto market, as the government will also allow more crypto businesses to operate within the country, provided they meet the requirements. The Ukrainian central bank, National Securities Commission, and Ministry of Digital Transformation will be the regulators of the Ukrainian crypto market.
More Countries are Legalizing Crypto
The Ukraine news today is coming just a day after the government of El Salvador adopted Bitcoin as a legal tender, meaning the citizens can use Bitcoin as a digital alternative for payment. In addition to that, the country recently acquired 550 Bitcoin, making them the first nation to hold a digital currency in its reserve.
Panama has also presented a law to regulate cryptocurrencies.