Why does Ukraine want to be the world’s crypto capital?

Highlights

  • Ukraine, with an average economy, has the desire to become the cryptocurrency capital of the world.
  • It has started spadework for the same by introducing basic regulations regarding Bitcoin and other cryptocurrencies.
  • The country is investing heavily in Bitcoin mining plants so as to be the world’s most convenient country for conducting the crypto business.

Ukraine, which is one of the poorest nations across Europe, has witnessed many financial scandals within its shores. It now aims at economic revival and wants to transform itself to be a newfound destination for international money and hence, is betting heavily on cryptocurrencies.

The present Ukrainian government is planning to make the nation the crypto capital of the world.

Related Read: Is Bitcoin legal in New Zealand?

Ukraine joined the bandwagon of crypto-friendly nations by adopting a law, ‘On Virtual Assets’

Source: Copyright © 2021 Kalkine Media

Ukraine lays down the groundwork for regulating crypto business

Earlier in September 2021, Ukraine jumped on the bandwagon of crypto-friendly nations by adopting a law, ‘On Virtual Assets’, which introduces basic regulation regarding cryptocurrencies in the country.

Why does Ukraine want to be the world’s crypto capital?

Before that, crypto trading was done in a hushed tone as companies and exchanges engaged in crypto dealing, often, were under the watchful eyes of law authorities.

Do Read: Will Australia Ever Adopt Bitcoin as Legal Tender?

Though the new law does not facilitate the adoption of Bitcoin as a legal tender, it does give a certain amount of protection against any frauds involving Bitcoin and other digital currencies.

Bitcoin mining plant being set up in the country

In order to rebrand the entire country and help the thriving crypto trading go mainstream in the nation, Ukrain has set an ambitious plan for itself to become a hotbed for worldwide crypto financers and investors.

A huge Bitcoin mining plant is coming up near Zaporizhzhia Nuclear Power Plant, which is near Ukraine’s border with Russia. It is being backed by Ukraine's Government and involves an investment of about US$700 million.  

Another Bitcoin-mining plant is being developed in the western region of the country, with a partnership between a local authority, Energoatom, and a Dutch company named Bitfury, which has expertise in building the Bitcoin infrastructure.

Alluring tax rates for crypto trading companies

The European country also is actively working on attracting crypto-based businesses by offering highly competitive tax rates.

Interesting Read: Why these 11 nations do not tax Bitcoin gains

Here, the companies involved in cryptocurrency trading will pay only 5% of their profits, while individuals will pay 5% with a grace period till 2025.

Furthermore, the country boasts a huge blockchain developer community.

According to its government's estimates, about 100 crypto-based companies are operating in Ukraine currently, which are likely to go up to 2000, when a proper legislation would come into effect.

Also Read: Bitcoin surges 16% as El Salvador makes crypto a legal tender

Bottom Line

Ukraine is consolidating the necessary foundation for cryptocurrency trading as it progresses ahead in making a name for itself in the global crypto business.

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