Ukraine has reacted positively to the arrival of new technologies, in this case, it has legalized cryptocurrencies and also wants to build a strong and healthy ecosystem.
Regulators around the world have to decide the approach they take to deal with cryptocurrencies. Some, like the United States, are still debating what to do with them,
Others, such as Switzerland, its crypto valley, have adopted a pragmatic approach in adapting digital assets to existing financial regulatory infrastructure.
But in many countries, particularly in Eastern Europe, the default position is that cryptocurrencies are legal, simply because legislation to the contrary has never been passed.
Or the case of Malta, which is called the crypto island due to its always friendly position towards our cryptoverse. Therefore, Binance, the world’s largest crypto exchange is located in that country.
The recently established Ukrainian Ministry of Digital Transformation is actively promoting a friendly environment for Blockchain and cryptocurrency projects in this Eastern European country.
The newly elected government has recently declared a broad commitment to create a legal status for cryptocurrencies. Regulators formed an interdisciplinary group composed of representatives of parliament, NGOs and industry organizations.
In order to build a friendly ecosystem, the ministry has set out to launch several initiatives in order to promote these new disruptive technologies as a series of meetings with all relevant stakeholders to discuss the status of various work streams related to Blockchain, how to promote changes in the Ukrainian AML, licenses and tax legislation as well as by the recently established inter-factional association of parliamentarians called “Blockchain4Ukraine” and the Parliamentary Committee of Digital Transformation elected by the newly elected parliament.
The association, which consists of approximately 50 parliamentarians, will collaborate to promote blockchain by working on blockchain-related bills that will be submitted to parliament.
In addition, the MDT is also working to coordinate a series of collaborative efforts with several working groups that have been fragmented in the hope that this will produce tangible results within clear deadlines, where it has become the owner of many projects. built on the Blockchain in the last 4 to 5 years.
As an external challenge, the European country has set out to implement the recent Orientation of the International Financial Action Task Force (FATF) on crypto assets within the same Ukrainian legislation to ensure that the country keeps pace with the international market of its neighbors in the European Union.
In the internal field it is related to the scalability of the potential business. In particular, Ukraine remains a society based primarily on cash due to a relatively low integration with the banking / financial ecosystem. Therefore, Ukraine will need changes in infrastructure and society to promote the use of electronic transactions if the blockchain becomes more reliable and used by market participants.
On the other side of the tax side, According to a report in a Ukrainian news media, the Vice Minister of Digital Transformation declared that users of any type of cirptography “would leave the gray zone and start paying taxes.”