Updated 17 Sep, 2021

A Wave of Countries Lined Up to Legalize Bitcoin After El Salvador

Ukraine outline on purple background with Bitcoin on itA Wave of Countries Lined Up to Legalize Bitcoin After El Salvador

Key Takeaways:

  • A growing list of countries aim to legitimize and recognize bitcoin and cryptocurrencies
  • After El Salvador, Ukraine forges ahead, while Paraguay and Cuba could be next

Ukraine Moves Ahead with Recognizing Bitcoin

El Salvador took decision to officially adopt bitcoin as legal tender and a national currency. Following this, several other countries have queued up to introduce some form of legalization or regulation for the original cryptocurrency.

Ukraine’s parliament adopted a cryptocurrency bill that legalized and regulated the use of all digital assets, including bitcoin.

Ukraine’s adoption of bitcoin does not mean the token would be used as legal tender. However, Ukrainians will be able to trade or invest in bitcoin legally. Prior to the approval from the parliament, cryptocurrency trading in Ukraine happened largely in a legal gray area.

“The development of a new industry will allow attracting transparent investments and will strengthen the image of our country as a high-tech state,” said Mykhailo Fedorov, Ukraine’s vice prime minister of digital transformation.

Ukraine’s new cryptocurrency legislation is bound to make the country bitcoin-friendly once the President signs off on it. As a result, several other countries are racing to draft bills that aim to legalize bitcoin and cryptocurrencies.

The List of Countries Adopting Bitcoin Continues to Grow

Paraguay and Panama could be next to come up with their own bitcoin laws that aim to embrace the use of the flagship cryptocurrency among their citizens. Over the last few months, Paraguay has been busy hammering out a bill that aims to make the country an attractive place for crypto players seeking a warm regulatory environment.

In Panama, lawmakers are exploring options to embrace bitcoin. These include enacting a law that would make the number one cryptocurrency a legal tender in the Central American country. Last week, Panamanian Congressman Gabriel Silva introduced a bill. This bill is designed to provide “legal, regulatory, and fiscal certainty to the use, holding and issuance of digital value and crypto assets in the Republic of Panama.”

Near the end of August, Cuba announced it will recognize and regulate cryptocurrencies such as bitcoin. The Cuban central bank is set to prepare rules on using cryptocurrencies.

In Europe, Germany became the first country to legally pave the way for digital asset adoption. In July, the German parliament granted institutional investors, also called Spezialfonds, the ability to invest as much as 20% of their portfolios in bitcoin and other cryptocurrencies.

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