Ukraine Plans For Wider Crypto Adoption To Lead Eastern Crypto Space
Reports have claimed that the Ukrainian government is currently banking on using digital assets to pivot itself into the lead across the eastern Europe crypto sphere.
According to data presented by analysis platform Chasinalysis, Ukraine is currently in the lead when it comes to adopting cryptocurrencies. The country is presently ranked number one in the Global Crypto Adoption Index for 2020, beating off competition from other countries.
Despite the high rate of crypto adoption in Ukraine, the country’s government is yet to build a regulatory framework for digital assets.
The new bill was initially passed in 2019
Even though the legislative arm has been trying to create a crypto law that would guide its activities since 2014, every attempt has yielded no result whatsoever. Some months ago, the government finally drew up a new bill that will guide the actions of the sector and legitimize businesses and investments in the industry. And with the look of things, it looks as though they have been successful.
In its FinTech strategy, the Ukrainian central bank already promised to legalize crypto activities across the country. In the strategy document, the bank said it would fully implement laws and provide a transparent framework for crypto assets.
The first steps to actualize this dream were first taken in 2019 when the Ukrainian parliament members announced that they had passed a law to check money laundering. Among other aspects that were touched in the Financial Action Task Force standard was regulating digital assets.
In the new bill, the parliament created an excellent action plan and delegated activities to different law enforcement agencies. The bill specifically said that the Ministry of Digital Transformation would majorly be controlling the activities of digital assets in the country.
The new bill will streamline the activities of decentralized autonomous organizations
The bill also delegated the Ministry to work hand in hand with Crystal Blockchain BV, a blockchain analytics firm developed by Bitfury Group to track suspicious crypto transactions. As expected, the European nation did not see digital assets as a means of payment in the new bill but instead said it was an intangible asset.
The bill further noted that digital assets could be used for every other thing except for making payments. The bill’s authors tried to touch some key areas where digital assets can be used as they mentioned instances like Initial Coin Offering to stablecoins and other tokenized assets.
With crypto adoption rapidly growing in the European nation, the new legislation has highlighted the difference between decentralized finance and decentralized autonomous organization infrastructure. The exciting part is that this new bill will streamline the activities of decentralized autonomous organizations. If the new bill doesn’t recognize the DAO features, then DAOs may be considered illegal in the long run.
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