• Cryptocurrencies being a legal gray area in Ukraine may soon come to an end.
  • As a top adopter of Bitcoin globally, Ukraine has passed a bill to legalize crypto in the country.
  • Banks would be able to take on digital asset firm accounts, while citizens would have their crypto assets legally protected.

The Ukrainian government may soon legalize cryptocurrencies as a bill has passed to allow banks to take on digital asset company accounts. Should the bill be signed into law, citizens who hold the new asset class would be able to be protected in case of theft.

Ukrainians are the top adopters of cryptocurrencies

Bitcoin and other cryptocurrencies have been in a legal gray area in Ukraine so far, despite being the country with the most adopters of digital assets in 2020. 

The bill, drafted by the Ministry of Digital Transformation, is expected to go into effect in the coming months after the president signs the new legislation. The tax code would also be required to be amended prior to passing the bill into law.

The draft bill states that the law will regulate legal relations in connection with the turnover of cryptocurrencies in the country. In addition, it will also outline the rights and obligations of digital asset market participants. 

Unlike the recent move for El Salvador to adopt Bitcoin as legal tender, Ukraine’s new legislation does not include the gateway for cryptocurrencies to be used to pay for goods and services. 

However, Ukrainians would be able to purchase and trade cryptocurrencies freely, and blockchain businesses could work directly with the current banking system. 

So far, the crypto legislation has been passed, with 276 lawmakers supporting the law, while only six were against the bill. 

The main motive behind the bill seems to be protecting those who hold Bitcoin and other digital assets and clarifying its legal stance in the country. Law enforcement agencies in the country previously treated cryptocurrencies as a scam, which resulted in crypto businesses being raided.

Cryptocurrency exchanges would be able to operate in the country legally. 

Bitcoin price bounce back not on the horizon

Bitcoin price continues to retrace after the market crash that pushed the leading cryptocurrency below $43,000. BTC is struggling to find support as it heads lower to tag the 100 twelve-hour Simple Moving Average (SMA), which sits near the 50% Fibonacci retracement level at $44,121.

Currently, the 50 twelve-hour SMA and the 61.8% Fibonacci retracement level act as stiff resistance for Bitcoin price. Accompanied with accelerated selling pressure, BTC must hold above the aforementioned support to save itself from dropping lower.

BTCUSDT

BTC/USDT 12-hour chart

Further support may arise at the July 31 high at $42,608 before Bitcoin could face the risk of slumping toward the 38.2% Fibonacci retracement level at $40,506.

Although a recovery remains distant, should the bulls plan to reverse the period of underperformance, slicing above the diagonal resistance trend line at $50,000 could see Bitcoin price aim for bigger aspirations. 


Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

Recommended content


Recommended Content

Editors’ Picks

Is Altcoin Season here as Bitcoin reaches a new all-time high?

Is Altcoin Season here as Bitcoin reaches a new all-time high?

Bitcoin reaches a new all-time high of $98,384 on Thursday, with altcoins following the suit. Reports highlight that the recent surge in altcoins was fueled by the victory of crypto-friendly candidate Donal Trump in the US presidential election.

More Altcoin News
Shanghai court confirms legal recognition of crypto ownership

Shanghai court confirms legal recognition of crypto ownership

A Shanghai court has confirmed that owning digital assets, including Bitcoin, is legal under Chinese law. Judge Sun Jie of the Shanghai Songjiang People’s Court shared this opinion through the WeChat account of the Shanghai High People’s Court.

More Cryptocurrencies News
BTC hits an all-time high above $97,850, inches away from the $100K mark

BTC hits an all-time high above $97,850, inches away from the $100K mark

Bitcoin hit a new all-time high of $97,852 on Thursday, and the technical outlook suggests a possible continuation of the rally to $100,000. BTC futures have surged past the $100,000 price mark on Deribit, and Lookonchain data shows whales are accumulating.

More Bitcoin News
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange

Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange

Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.

More Shiba Inu News
Bitcoin: New high of $100K or correction to $78K?

Bitcoin: New high of $100K or correction to $78K?

Bitcoin surged to a new all-time high of $93,265 in the first half of the week, followed by a slight decline in the latter half. Reports highlight that Bitcoin’s current level is still not overvalued and could target levels above $100,000 in the coming weeks.

Read full analysis
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

BTC

ETH

XRP