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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”
#Bitcoin mining will make Ukraine a "high-tech state." – first vice prime minister 🇺🇦 pic.twitter.com/t9YQbXXaKo
— Bitcoin Magazine (@BitcoinMagazine) February 1, 2022
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.
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