Ukraine wants to become a global hub for cryptocurrencies
Ukraine wants to become a global hub for cryptocurrencies
Regulation

Ukraine wants to become a global hub for cryptocurrencies

By Vincenzo Cacioppoli - 7 Feb 2022

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After passing Law No. 3637 on 9 September that effectively legalizes digital currencies in the country, Ukraine, which is experiencing days of very high tension with Russia, would like to become a global technological hub for cryptocurrencies.

The government’s stance on cryptocurrencies in Ukraine

According to the Kyiv post, the country’s most widely circulated newspaper, Ukraine would like to facilitate the entry of large tech investors

On a recent official state visit to the United States, Ukrainian Prime Minister Volodymyr Zelensky spoke of Ukraine’s emerging “innovative legal market for virtual assets” as a strong point for investment.

 Deputy Premier and Minister for Digital Transformation Mykhailo Fedorov said the country is modernizing its digital payments market so that the central bank can soon print its own digital state currency.

A few days ago, Mykhailo Fedorov himself noted how Bitcoin mining will make Ukraine a “high-tech state” 

Crypto adoption

According to the Global Crypto Adoption index, compiled by analytics firm Chainalysis, the country would be in fourth place in the ranking, with a volume of about 8 billion cryptocurrency transactions

The daily volume of transactions would amount to about $150 million, surpassing the volume of interbank exchanges in the national fiat currency, the hryvnia, according to reports in the New York Times.

Ucraina criptovalute
Ukraine has already passed a crypto law

Ukrainian crypto regulation

A few days ago, the deputy minister of digital transformation, high-tech entrepreneur Alexander Bornyakov, said that the technology sector, with growth rates of 30% per year and worth about $5.4 billion, would already be the country’s second largest industry after agriculture, but thanks to digital currencies it could still grow, making the country increasingly technological and attractive to international investors in the sector.

To reach this ambitious goal, according to Borunakyok, it is necessary for the country to pass serious legislation to regulate the sector, which would be as favorable and open to cryptocurrencies and investors as possible.

“The crypto business is global, and we want to be part of this global economy. However, in order to be part of the global economy, you have to obey common rules”,

Bornyakov said during an interview with Euronews newspaper.

According to some experts, until now the cryptocurrency market has thrived in the country in a total absence of regulation, thus also leaving room for fraud and illegal uses of these instruments.

And it’s precisely to eliminate these issues that the cryptocurrency law, which however does not provide for the payment of goods and services with cryptocurrencies like in El Salvador, was amended at the end of the year.

“We want European Union government bodies or regulatory bodies to trust our licenses so that Ukrainian businesses will be able to attract investments, or have those people from European Union be clients of their platform or business”.

So concluded the deputy minister of digital transformation in his interview

 

Vincenzo Cacioppoli

Vincenzo was born in Genova but lived most of his life in Milan. He has a degree in political science. He is a journalist, blogger, writer, and marketing and digital advertising expert. After a long experience in traditional marketing, he started working with the web and digital advertising in 2011, creating a company called Le enfants. Passionate about the web and innovation, in 2018 he started exploring the topics related to blockchain technology and cryptocurrencies. Independent cryptocurrency trader since March 2018, he now collaborates with companies in the sector as a content marketing specialist. In his blog. mediateccando.blogspot.com, he has long been primarily focused on blockchain, which he considers to be the greatest technological innovation after the Internet. His first book about blockchain and fintech is scheduled for release in November.

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