Ukraine becomes 5th nation to formally recognize, regulate bitcoin

Sept. 9 (UPI) -- Lawmakers in Ukraine on Thursday passed a law, by near unanimous vote, to formally recognize and regulate the cryptocurrency bitcoin -- becoming the fifth nation to do so in recent weeks.

The Verkhovna Rada, Ukraine's unicameral parliament, voted to pass the measure and send it to President Volodymyr Zelensky for final approval.

The proposal establishes rules for bitcoin exchanges and public protections for misuse of virtual assets.

There are no laws on the books for cryptocurrencies in Ukraine, which allows their use but offers no legal framework for transactions.

"It will reduce stereotypical attitudes towards cryptocurrencies and will help them to become normal financial instruments," Oleg Kurchenko, CEO of virtual asset exchange platform Binaryx, said, according to the Kyiv Post.

Four other nations have also formally recognized bitcoin recently.

This week, El Salvador became the first country to adopt the cryptocurrency as legal tender and Cuba set a legal framework for bitcoin last month. Panama is also considering similar recognition.

Many governments, investors and bankers, however, remain weary about the volatile nature of cryptocurrencies. Last month, the U.S. Congress proposed rules around crypto "brokers" in its $1 trillion infrastructure bill.

The U.S. Treasury has also expressed concern about unregulated cryptocurrencies being used by money launderers, terrorist financiers and other bad actors.