Ukraine Partners with Binance to Regulate Cryptocurrencies

The Ukrainian government recently announced that it would focus on the development and introduction of a legal framework for both the cryptocurrency sector and the blockchain industry. Only a couple of weeks later, a shared press release shows that the nation’s Ministry of Digital Transformation will work together with Binance.

According to a press release by the Ukrainian Ministry of Digital Transformation and cryptocurrency exchange Binance, the two entities have signed a memorandum of understanding (MoU). The memorandum is a result of a new cooperation between the two, as Binance is helping the Ministry to develop a national legal cryptocurrency framework for Ukraine.

In the shared press release, it is claimed that the Ministry, members of the Ukrainian Parliament, and commercial banks are working on finalizing the cryptocurrency laws and introducing them to the Verkhovna Rada, the Ukrainian parliament, by the end of 2019.

The CEO of Binance, Changpeng Zhao, confirmed the news on his Twitter account, stating that the development represents a “real change from a few years ago.” Apart from stimulating the economy and bringing positive growth to the country, a potentially positive cryptocurrency adoption could also bring investors to Ukraine, claims Zhao in the press release.

Besides developing the country’s legal framework, Binance and the Ministry of Digital Transformation plan to create a group that focuses on strategic blockchain implementation. Furthermore, the workgroup will also develop a “new virtual assets and virtual currencies market in Ukraine.”

According to Mykhailo Fedorov, the Deputy Prime Minister, Ukraine has reached a stage where both legislative and executive entities “have come to an understanding of the regulation of the Ukrainian cryptocurrency market.” He stated that from now on, both domestic and global blockchain and crypto companies will be able to operate in Ukraine in a transparent manner. Fedorov also welcomed Binance for providing its support as an advisory entity.

While the government of Ukraine is focusing on introducing a cryptocurrency legislation in order to make the sector more transparent, perhaps in a move to introduce taxes, the new partnership with Binance leads the community to believe that the country may become a suitable testing ground for blockchain technologies.

The decision to focus on blockchain technology, which was also recently announced by China, may result in Ukraine becoming not only a regional hub but also a continental hub for cryptocurrencies such as Bitcoin as well as blockchain technology. With sufficient support, Ukraine might soon be similar to Malta in its pro-cryptocurrency stance.