After El Salvador, Ukraine could be the next country to legalise bitcoin.
The use of cryptocurrencies has not been illegal in the country, and residents have been able to buy and sell them, but in the absence of a law regulating the use of cryptocurrencies, local courts have been unable to help if abuse is suspected. For example, in August, the Ukrainian Security Service (SBU) shut down a cryptocurrency exchange network in Kiev, where the agency said customers were engaged in money laundering activities.
On 9 September, the Ukrainian Parliament adopted a law legalising and regulating cryptodevices Act which allows cryptocurrency holders to take action against fraudsters and defines which assets can be considered cryptoassets. Ukrainian President Volodymyr Zelensky has already travelled to Silicon Valley to start working with IT experts there to develop the pillars of the digital economy.
According to the Ukrainian head of state, the legalisation of bitcoin could have a number of beneficial effects on the country's economy, such as helping to reduce inflation and whiten the economy. If the new legislation is signed by Zelensky, terms such as digital wallet and private key will be added to the Ukrainian legal system.
It is important to note that the Salvadoran law unlike in Ukraine, bitcoin will not become equivalent to the country's official currency, the hryvnia, although it is possible that the country, which is looking towards a digital economy, will do so in the near future.
