On 17 February, 2022, the Ukrainian parliament approved a measure legalizing cryptocurrencies
FREMONT, CA: The Ukrainian parliament approved a measure legalizing cryptocurrencies on 17 February, 2022, laying the groundwork for the regulation and management of digital assets such as Bitcoin. Ukraine's Deputy Prime Minister and Minister of Digital Transformation, Mykhailo Fedorov, declared on Twitter that this would legalize crypto exchangers and cryptocurrencies, and Ukrainians will be able to protect their assets from possible abuse or fraud.
Last September, 2021, Ukraine's parliament enacted a law legalizing cryptocurrencies, but President Volodymyr Zelenskyy vetoed it the following month. Zelenskyy stated that Ukraine cannot afford to build a new regulatory system to manage cryptocurrency. Further he suggested that the new version of the law on virtual assets, which passed parliament on 17 February, 2022, places crypto regulation under the supervision of the National Commission on Securities and Stock Market. Further, the bill excludes Bitcoin and other cryptocurrencies from the definition of legal money. Ukraine has not followed El Salvador's lead, which made Bitcoin an official currency in September, 2021. However, the new regulation will provide reassurance to businesses operating in what was previously a legal murky area.
In an official statement, Fedorov added that market participants will get legal protection and the chance to make decisions based on direct conversations with government agencies. Ukraine has established itself as Europe's main crypto hub, despite the lack of institutional regulation in the past. In Global Crypto Adoption Index 2021, which analyzed the amount and value of crypto exchanged in a country, market consultancy Chainalysis ranked Ukraine fourth globally, behind Vietnam, India, and Pakistan. The Eastern European country makes more cryptocurrency transactions every day than it does in its fiat currency, the hryvnia. Meanwhile, Ukraine has a large pool of developers eager to work with blockchain technology and is ranked first for attractiveness in terms of IT outsourcing in 2021, and the best in the world for hiring programmers, according to Dutch IT firm Daxx.