19 Jan 2023
Ukraine may be the best cryptocurrency jurisdiction
Mykhailo Fedorov, the vice prime minister of Ukraine and the country's official in charge of digital transformations, recently told the media at Davos 2023 that his country is likely to become the best jurisdiction in the world for crypto assets
Fedorov disclosed that the nation has been relying on cryptocurrencies to consistently get all of its funding support for buying military equipment, despite the country's financial constraints caused by the war. Therefore, the nation will always be indebted to the crypto sphere. The minister also referred to the ongoing creation of a comprehensive legal framework that will grant cryptocurrencies full legal status in Ukraine. In February 2022, the Ukrainian parliament approved a bill on virtual assets.
However, he added that changes to Ukraine's tax laws are still required before the legislation fully takes effect. As a potential candidate for membership in the European Union, Ukraine will harmonize its laws to comply with their recommendations and those of the IMF and World Bank.
The minister claims that the Ukrainian national bank is considering introducing its digital currency (E-hryvnia). He anticipates receiving his paycheck in it. The minister noted the level of progress made in the creation of the central bank of Ukraine's digital currency (CBDC), adding that its pilot testing had already been carried out with the help of private banks and stellar.
Ukraine may become one of the best jurisdictions for cryptocurrencies, given the protracted conflict between Russia and the country and its preference for and plans for cryptocurrencies and other digital payment methods. The minister thanked the G7 nations for supporting Ukraine and called for more technological sanctions against Russia, which he claimed is currently using proxies to buy components with digital assets.
According to a recent report, the Russian central bank is looking into two cross-border settlement options to avoid sanctions and proceed with its planned launch of a digital ruble in the first quarter of 2023. The two-segment settlement solutions are designed to launch a single platform for facilitating cross-border communications during transactions after first establishing Russia's bilateral engagements with trusted nations.
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