The Ukranian minister for Digital transformation has announced plans to legalize cryptocurrencies in the country. It is not that they are banned in the country, but rather cryptocurrency does not have official status in Ukraine.
The legalization is part of the efforts to modernize the country; an agenda by their new young president. The Ukranian deputy minister who is said to become the minister for digital transformation recently confirmed the claims. He said that legalizing crypto was among the top goals of the agency. According to him, they are also planning to transfer the state systems to a blockchain-based technology.
Cryptocurrency Regulation and Legalization
This new policy, however, is supposed to take effect by 2021. Throughout 2018 and 2019, the Ukrainian government integrated a regulatory framework that is supposed to regulate the cryptocurrency market. These policies will force crypto exchanges to execute a procedure (Know Your Customer) KYC and a system Anti-money Laundering (AML) to assist authorities to govern the market effectively.
A second step is planned to be rolled out in 2020 – 2021, after this, the government will now start crypto mining, taxation, and smart contract protocols. The main aim is to have cryptocurrencies recognized as a legal and real asset that is established in the industry.
The National Bank even plans on creating a Central Bank Digital Currency. The digital asset would be quite useful as it will enable cost-effective and quick fiat currency transfers in the country.
Regulations on Cryptocurrency around the World
Ukraine is obviously not the only nation that is looking to enhance controls on cryptocurrency. China is also regulating blockchain startups according to a release that was drafted a few weeks ago.
South Korea's Financial Supervisory Service has proposed extensive international cooperation between cryptocurrencies and regulators and also the initial coin offerings. Many countries are still looking to see how the regulations will do in the cryptocurrency world.