Based in Malta, the Binance Cryptocurrency Exchange has agreed to help Ukraine develop new rules for cryptocurrencies and digitize the country's finances.
The Ukrainian Ministry of Digital Transformation has announced the signing of a memorandum of understanding with Binance in order to work together to "establish the potential legal status of virtual assets and currencies in the country". The ministry was established in September to oversee Transition of Ukraine towards a digital economy and online government services.
Under the memorandum of understanding, Binance and the Ministry will create a joint working group to discuss the future regulation of cryptography and the creation of a digital asset market.
"Binance will also help develop transparent and efficient mechanisms for the transfer of rights to virtual assets or currencies using blockchain technology, as well as favorable conditions for investment and business in Ukraine," says a press release provided to CoinDesk.
Binance will meet representatives of the Ukrainian government at the next visit of the team to Kiev. Changpeng "CZ" Zhao, CEO of Binance, said in a statement that the new agreement was positive for Ukraine, stating:
"The legalization of cryptocurrencies and the corresponding adoption of progressive legislation in this area can become one of the key factors to boost the positive growth of the Ukrainian economy, as well as to attract additional investments in the country. "
Regulation en route?
A group of members of the Ukrainian parliament and entrepreneurs of channel chains recently released three bills that will soon be presented in the parliament of the country, as one of the deputies, Oleksiy Zhmerenetsky, said on his Facebook page.
"Legislation for the economy of the blockchain is approaching the finish line," wrote Zhmerenetsky, making drafts available (in Ukrainian only) for the public to review and comment on. A number of comments, including criticisms of the wording of the bills, have accumulated in the margins of the bills since their publication.
The Ministry of Digital Transformation, however, is optimistic about the prospects for future laws.
"Finally, Ukraine is finally in a situation where the executive, the legislative authorities and the market have understood the regulation of the Ukrainian cryptocurrency market," said Minister of Digital Transformation, Mykhailo Fedorov, in a statement.
The legislation, he suggested, should be ready to be introduced in the Ukrainian parliament "by the end of the year". In the end, the ministry "intends to create a comfortable and competitive environment for the cryptography sector in Ukraine," said Fedorov.
Binance, via the MoU, offers much more than just a consulting role.
"We are opening Ukraine to one of the largest cryptocurrency markets in the world and legally leaving Binance to start it," Fedorov added.
Mikhailo Fedorov image via Shutterstock