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While much progress has been made on the issue, cryptocurrency adoption remains a significant fight for the broader digital asset industry.
Many people have put a lot of work into supporting crypto adoption. For instance, the authorities should be the first to understand the benefits of these assets. In Ukraine, that fight is nearing an unpredictable success.
Hello to “On Virtual Assets”
Earlier in September, the Ukrainian Parliament adopted new laws. The regulations deal with the activities of domestic and foreign cryptocurrencies operating in the country. The draft law, On Virtual Assets, officially recognizes cryptocurrencies as assets in the Eastern European country.
The new Ukrainian laws will essentially take pages from the Travel Rule – another regulatory document developed by the Financial Action Task Force (FATF). Ukraine’s Ministry of Digital Transformation will oversee its implementation. This will ensure proper digital asset regulation and see to the crypto industry’s growth in Ukraine.
The new laws have still not uncovered the details. However, a spokesperson for the Ministry of Digital Transformation explained a bit about the law. For example, it will allow companies to launch crypto markets in Ukraine. At the same time, these companies will be able to open bank accounts and access financial tools in the country.
The new law also makes it easier for Ukrainians to declare their income in cryptocurrencies. The assets will be given judicial protection from now on, and so will their investors. Other areas where the law highlights include taxation, government regulation, and possible penalties for tax evaders.
Crypto to Transform Ukraine
Oleksandr Bornyakov, the Deputy Minister of Digital Transformation of Ukraine, explained that the new law was enacted with the hopes of attracting foreign companies to Ukraine. In part, he said:
“It will become a powerful incentive for the further development of the crypto-sphere in Ukraine. Banks will open accounts for them and conduct transactions with a new class of assets. I am sure that society, business, and the state will benefit from the legalization of the new sector of the economy.”
The move essentially takes Ukraine into the ranks of countries like El Salvador, which have become very friendly towards cryptocurrencies. However, unlike El Salvador, Ukraine isn’t making crypto legal tender in the country. This means that there is still no provision that allows people to use crypto for payments.
Crypto is definitely not in the class of the hryvnia – Ukraine’s fiat currency. However, the adoption of this new law appears to be a part of a much stronger positive push towards crypto.
According to a report from the Kyiv Post, the Ukrainian government is hoping to open its crypto market to foreign investors and businesses. Top government officials have already started to line up investments from across the world. Furthermore, the hope is that crypto will become a fledgling industry in Ukraine soon.