Amidst the dip, Ukraine legalizes bitcoin making cryptocurrency more global

Ukraine on Thursday has passed a law that legalizes and regulates bitcoin in the country, providing official clarity on the asset which was not previously clear.

This bill gives the citizens “permission” to own and trade bitcoin and other cryptocurrencies on exchanges. The bill also gives clarity on wallets and what private keys are.

The country becomes the fifth country in as many weeks to lay down some ground rules for the cryptocurrency market, a sign that governments around the world are realizing that bitcoin is here to stay.

Until today, crypto in Ukraine has always existed in a legal grey area.

Locals were allowed to buy and exchange virtual currencies, but companies and exchanges dealing in crypto were often under close watch by law enforcement.

According to the Kyiv Post, authorities have trended toward taking a combative stance when it comes to virtual cash, regarding it as a “scam,” raiding crypto-related businesses, and “often confiscating expensive equipment without any grounds.”

In August, for example, the Security Service of Ukraine (SBU) blocked a network of what it called “clandestine cryptocurrency exchanges” running in the capital city of Kyiv. The SBU claimed these exchanges were facilitating money laundering and providing anonymity of transactions.

Has Ukraine legalizes bitcoin, it spells out certain protections against fraud for those who own bitcoin and other cryptocurrencies, and in a first for the Verkhovna Rada, lawmakers have taken a stab at defining core terminology in the world of crypto.

If signed by the president, virtual assets, digital wallets, and private keys are terms that will be enshrined in Ukrainian law.