The Ukrainian Parliament has voted to make cryptocurrency legal and allow exchanges to enter the country and operate under specific licensing conditions.
While Ukraine has managed to be one of the leaders in blockchain and crypto technology for the past decade, the country has fallen behind on regulation, something that is about to change.
According to a report by Chainalysis released in September 2020, Ukraine was one of the highest-ranking states in terms of overall cryptocurrency adoption.
If the recent bill passed by Parliament is signed into law, there will be an influx of new business opportunities for some of the biggest exchanges worldwide.
The Ministry of Digital Transformation is hoping to boost the country's gross domestic product (GDP) by attracting bigger investments from crypto companies.
The adoption of specialized legislation should lead to more opportunities for businesses to establish their base of operation in Ukraine as well as drive the country's economy, said deputy minister Oleksander Bornyakov.
Ukraine will also benefit from a regulated crypto industry whereby it can take active steps towards monitoring existing consumers and even tax their earnings, something that is still ill-defined.
Ukrainians have been motivated to turn to crypto by a lack of transparency, asset seizures and rampant corruption. In fact, the country's citizens remitted $8.2bn worth of crypto assets abroad in 2020 alone.
However, inviting more regulation into the sector should come with transparent practices that restore people's trust in the state.