on 7 september is going into the controversial new crypto law in the Central American country of El Salvador. At that time bitcoin (BTC) is an officially recognized and legal tender in the country. That means that, among other things, retailers are obliged to adopt the largest cryptocurrency.
The law caused a lot of discussion. Not everyone agreed with the law and could have negative consequences. The fact remains that many other countries take an example from El Salvador and wish to introduce similar legislation themselves.
Ukraine follows El Salvador?
Ukraine also sees a possible adoption of cryptocurrencies. In a interview with local media A minister in the country announced that a bill is ready that should make it possible for residents of Ukraine to pay with cryptocurrencies.
However, crypto does not get the legal tender status that it does in El Salvador, for example. Payments with cryptocurrencies will at all times go through an intermediary. The new law aims to ensure that such intermediaries can immediately convert cryptocurrencies into the national currency upon payment.
“Currencies are converted immediately during payment. […] That way it will be almost legal to pay with cryptocurrencies in Ukraine, but through an intermediary.”
At the moment, the bill is before the parliament of Ukraine. Of course, the law must first be approved by this body before it is actually put into motion.
‘Work permits’ for crypto
The minister also indicates that certain cryptocurrencies be able to obtain some kind of work permit in the country. According to him, this is to see if the systems are functioning properly. According to him, obtaining such a ‘work permit’ is also a lot simpler than a full licence.
The point here is that cryptocurrencies can prove that there is enough capital and that no people are involved in projects that are on certain blacklists in Ukraine.
While this possible new law is not as groundbreaking as the recently passed crypto law in El Salvador, it is a great step for the country and the world of cryptocurrencies. The law has the potential to make Ukraine a world leader in the crypto sector.
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