The government of Ukraine has seen the potential on legalizing cryptocurrency startups and has presented a proposal to achieve the total legalization for this field of industry in no more than three years. In fact, they are already working on regulations that will bolster the creation and relocation of these startups to the Ukrainian state. The final goal is that Ukraine will legalize cryptocurrencies in all forms.
Why Legalization Matters
Ukraine is taking the cryptocurrency business very seriously, and that is why they are going the long route to be sure that there is a legal framework to support all of the activities derived from the existence of this crypto assets. The other route would be trying to classify cryptocurrency in one of the existent business classifications, but that approach could have shortcomings in the long run.
Crypto assets are new instruments that are not likely to be grouped with stocks or commodities. The legalization will occur in two stages, according to reports from the Ministry of Economic Development and Trade. The first stage will deal with determining the classification of all these industries and putting all that in drafts to move forward with the second phase.
The second phase deals with the classification of these industries as “subjects of primary financial monitoring,” a status that is normally given to financial institutions and banks. The hard part of the legalization effort will occur during this phase because lawmakers will have to examine and write drafts for difficult and polemic instruments as Initial Coin Offerings and Smart Contracts.
Ukraine Will Legalize Cryptocurrencies To Grant Security
This legalization effort will go hand in hand with bringing operational security and clearness for incoming cryptocurrency startups that will want to settle in the Ukranian soil. The objective of all that is to bring easy banking to these startups that in other countries have to jump through hoops to get bank accounts.
This push for legalization has just an objective: to bring millions of dollars in investments for Ukraine in the form of taxes from cryptocurrency startups. Initial Coin Offerings have been known to get big amounts of cash and there are few countries that offer clear regulations for this kind of startups, so Ukraine aims to capitalize on that.
Malta, a little island country in the middle of Europe has made great advancements in this field, attracting Binance, one of the most important exchanges in the world to carry its business there. Ukraine will legalize cryptocurrencies to get to that state and pose a direct threat to countries like Malta in scoring deals with exchanges and ICO.