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LEGALITY OF BITCOIN IN UKRAINE

Published: in Finance Advice by .

One of the most notorious and controversial issues brought to the digital financial market is the legality and support of crypto trading, since being digital and without an entity that controls and regulates them makes them the focus of possible fraudulent transactions.

The number of followers has increased significantly. The amount of money circulating through the blockchain for cryptocurrency exchange operations has increased.

The anonymity in BITCOIN operations is the characteristic that casts doubt on its legality, but this does not imply that cryptocurrencies are not legal since many countries have adopted them as currencies to carry out various transactions.

The situation that causes controversy is that cryptocurrencies for not a currency that should be issued and controlled by a financial entity such as the Central Banks of each country because it simply does not fit the standards of the traditional financial market.

Several countries have even created their digital currencies in the world, some with the typical characteristics of digital currencies and others that have innovated by being backed by some asset or mineral resource of the country.

Ukraine Profits after Cryptocurrency War

In a complex and complicated situation, any country going through a contentious situation finds it difficult to manage finances from a different perspective.

Amid restrictive measures and where the management of Fiat currencies is even challenging to achieve international commercial operations and, in turn, meet the population’s needs and compensate for the damage caused by the war.

Given the difficult situation and the large amount of material damage that has affected thousands of families; the possibility of receiving donations is opened, allowing those involved to receive help without using common money.

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Digital currencies surprised the world amid a war crisis, which Ukraine did not hesitate to take advantage of.

Large sums of money entered the country’s financial accounts but in the form of Bitcoin, where the authorities immediately decided to give way to the creation of the necessary laws so that Bitcoin is a legal tender in the national territory.

The amount that entered the country for donations in cryptocurrencies reached 100 million dollars.

The new law that the Ukrainian government has already promulgated refers to virtual assets, where the activities and steps that must be followed by the various EXCHANGE PLATFORMS that intend to carry out operations within the country are established.

The regulatory body for these activities in this Western country will be the National Securities Commission and the National Securities Market.

Another point in favor of this regulation is that financial and banking entities will also be able to execute operations with digital currencies.

Rebuilding a country with crypto

The donations received by Ukraine have been of various cryptocurrencies; it is estimated that more than ten types of them manage to send the funds received to the official wallets of the Ukrainian government.

Such has been the impact of these donations that a Web Portal has been created where people from anywhere in the world can contribute to the reconstruction of this country after the painful human and infrastructure losses.

According to the President of Ukraine’s declarations, the funds received will also be allocated to NGOs and various foundations for the benefit of citizens.

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After this historical fact, it was possible to determine that Ukraine is in fourth place among the countries that use cryptocurrencies the most, whereas P2P exchanges are in third place.

Although cryptocurrencies are legalized from a certain point, the fiscal aspect remains to be evaluated, where tax returns must be adapted to this new type of digital asset that is added to the accounting plan that must be registered by both companies and individuals who obtain income under the concept of cryptocurrencies.

Conclusion

The advances and spaces occupied by cryptocurrencies in the digital market and now in the traditional financial market show that their global adoption is not so distant.

That is why it is interesting to evaluate the various legal instruments that exist worldwide and regulate cryptographic operations in a certain way to merge all the positive elements of these laws and issue a global legal document for its regulation.

Where users can have greater security, but without these digital currencies losing their main attractions, such as the fact that they are decentralized.

Many interests arise when regulations and control are referred to. It is there where all financial entities would like to obtain their benefits.

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Finance Advice 2021