Ukraine legalizes cryptocurrency and tokenization of assets

Ukrainian parliamentarians adopted the bill “On virtual assets”, which will actually legalizecryptocurrency turnover in the country and will allow tokenize the assets of legal entities.

If in the second reading the legislators also support this initiative, in 2021 Ukraine will becomeone of the first countries in the CIS to legalize the use of digital assets.

Ukraine prepares to adopt cryptocurrency

Bill No. 3637 “On virtual assets” regulates several important issues related to the circulation of digital coins:

• Gives a clear definition to cryptocurrencies;
• Allows you to open bank accounts to carry out transactions with cryptocurrencies;
• gives right to users of digital assets to go to court in case of disputes;
• legalizes the operation of cryptocurrency exchanges in the country;

Ukrainian cryptocurrency business has been waiting for the adoption of this law for a long time.It legalizescryptocurrency exchanges and other companies that are now forced to work in the gray zone.

Volume of cryptocurrency transactions inUkraine reaches $150-200 million per day, and the total capitalization of the crypto market in the country exceeds $2 billion. Due to the lack of appropriate legislation, the state treasury does not receive a single hryvnia in tax deductions. The legalization of cryptocurrency will attract additional contributions to the budget, which is extremely important for the Ukrainian economy, which has been in crisis for the last 6 years.

In addition, the bill will allow businesses to to tokenize their assets and sell the rights to thatThis practice exists in other European and CIS countries.

Russia is exploring the possibility of tokenizing oil, gold and diamonds

Tokenization (transfer of ownership ofa certain asset in the format of a digital coin), can become a real solution to the problem of falling commodity markets in Russia, increasing the volume of sales of “black gold” on the international market. This opinion was expressed by Sergei Gorkov, General Director of Rosgeologia.

In addition, the Huobi cryptocurrency exchange and Rosgeologia are currently working on tokenizing gold and diamonds.

“There are 3,000 licenses in Russia for the extraction of usefulfossils, including palladium, platinum. These are specific assets that have good market liquidity. We started a project with Huobi to create a stable token platform based on diamond and gold mining. This will help geological exploration in our country and will play a significant role for our economy ", explained Gorkov.

Tokenized diamonds are already sold on the OpenSea platform.

The tokenization of metals was previously announced by"Norilsk Nickel". President of PJSC MMC Norilsk Nickel Vladimir Potanin reported that the introduction of a blockchain platform and the issuance of tokens backed by the value of the metal will allow the company to sell 20% of all products.

Norilsk Nickel token claims to be a newalternative currency, since they can be used to pay not only for the volume of purchased metals, but also to purchase Nordstar airline tickets, and also exchange them for ski passes at the Rosa Khutor ski resort. Vedomosti reported this.

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