Saad Ullah
Crypto Memorandum
The Ministry of Digital Transformation, responsible for keeping the country abreast in the digital world, has signed an memorandum of understanding with one of the leading global crypto exchanges, Binance. According to the press release, the Ministry, different Members of Parliament and other stakeholders such as crypto related commercial companies are planning on introducing different bills related to the crypto and blockchain industry to Verkhovna Rada, the Ukrainian Parliament by the end of this year.
Changpeng Zhao, the CEO of Binance, said that a proper, positive legal framework on the status of cryptocurrencies “is a real change from a few years ago” and such moves can not only bring growth to the industry, but attract more investors.
One MP, Oleksii Zhmerenetskyi, has already said that one of the legislation is near completion. The Ukrainian MP has already given public access to three different bills related to cryptocurrencies and has asked industrial experts to come forth and provide their feedback.
Ukrainian CBDC
Apart from creating a friendly environment for blockchain and crypto market in the country, the agreement has also hinted at (what could be) a government backed digital money. Apart from the creation of “virtual currencies market in Ukraine”, the agreement also mentions the creation of “new virtual assets”. This can be either introduction of new cryptocurrencies, or the creation of Centrally Backed Digital Currency (CBDC).
Minister Mykhailo Fedorov, the Deputy Prime Minister of Ukraine, has said that stake holders have
have come to an understanding of the regulation of the Ukrainian cryptocurrency market” and “Thanks to this step, both Ukrainians and global cryptocurrency companies will be able to operate in Ukraine openly and transparently. In addition, we welcome Binance’s willingness to provide us with advisory assistance as the experience of one of the leading world players in this field is very useful for us at the stage of forming the legislative framework and the conditions for market regulating.
If Ukraine does go for a planned CBDC, it will not be the first that has thought on the lines. Chinese are leading the way, accordingto one executive from a think tank, while Bahamas has decided to work on oneto ensure economics and financial activities are not disrupted due to natural disasters. Recently, a group of 200+ banks and financial institutions in Germany have released a research paper, asking for a digital Euro.
Saad Ullah
