What is Cryptocurrency and How Does It Work?

Ukraine Becomes Crypto-Friendly Country

After El Salvador made a move on legalizing Bitcoin and administering it as a legal tender, other countries wanted to do the same but couldn’t bring themselves to do it until unless there was a clear financial framework and regulatory oversight which ensures that it is going to work out in the long run. This is exactly what other South American countries have been going through, and none of them could to this date come up with an elegant method for crypto adoption. Ukraine, on the other hand, has jumped the ladder and has accepted a bill that legalizes Bitcoin and other cryptocurrencies within the country while administering their authority as a legalized financial entity but not as a legal tender.

The bill didn’t get through on the first try; in the beginning, there was a draft that was presented to the Senate for processing and debate and luckily, the first draft got accepted. After the success of the first draft, the regulatory commissions and agencies were brought into the mix, and they worked overnight to present the legal framework which allows for crypto adoption and legalizing cryptocurrencies such as Bitcoin and other altcoins.

Ukraine does not Accept Bitcoin as Legal Tender

This is the exact process through which Bitcoin is now considered a legal entity within Ukraine. As for other countries such as Cuba and Panama, there is a crypto bill being drafted as we speak and will be presented to the parliament for debate and further processing.

There is, however, a small thing that needs to be squared first, Ukraine still needs to make amendments within the tax code so that people who would buy, trade, or withhold cryptocurrencies in the future could be taxed properly. This task has already been assigned to the lawmakers, and an expected timeline is given in which all these changes and amendments would take effect.

This is the second country after El Salvador to have taken some initiative with Bitcoin, but the law here clearly suggests and rates that Bitcoin is only a cryptocurrency that has attained a legal, financial status and it is in no capacity a legal tender or recognized as one within Ukraine.