My last blog about cryptocurrencies came out a few months ago. This means that it would be too difficult to choose and consider one topic in today’s article. We will go through the list of events that have occurred in the field of digital currencies during this time. The most controversial financial project has experienced a lot over the past months, and also changed not only the foreign but also the Ukrainian market.
Revolut plans to release its token
The well-known fintech mastodon Revolut, with an estimate of $33 billion, plans to launch its cryptographic token. Revolut offered the ability to buy and sell cryptocurrencies 4 years ago, but this year alone, it decided to expand its offer, increasing it to 53 supported tokens. According to preliminary reports, Revolut is working on something like its own exchange token, such as BNB Binance. This allows Revolut users to earn tokens like Wirex and Nexo. This means that the new token is designed to help users access additional features and save on fees when making payments in the app. In addition, the Revolut token will represent more than an investment opportunity. Owning it opens up many benefits, including discounts, rewards, and premium access.
Compared to other major fintech players who are only interested in cryptocurrency, the launch of the token could stand Revolut out of the group. Similar to competitors like Robinhood and PayPal, Revolut has added the means to buy and store various cryptocurrencies in its financial and banking app.
China declares all cryptocurrency transactions illegal
While some are developing cryptocurrency projects, China is playing a banned card. Again. The Central Bank of China has determined all cryptocurrency transactions to be illegal, which effectively prohibits the use of digital tokens such as Bitcoin. China is one of the world’s largest cryptocurrency markets. Country fluctuations often affect the global price of cryptocurrencies. This news is no exception.
Such actions can be called a national campaign to suppress what the Chinese state cannot control. There will always be arguments against it. Cryptocurrency trading has been officially banned in China since 2019, but it has continued online through foreign exchanges. However, this year there have been changes that are evidence that China wants to stop trading cryptocurrency in all its forms. Foreign websites that continue to provide such services to Chinese citizens will engage in illegal activities and commit a crime. For this, they can be held accountable.
Ukraine legalizes virtual assets
Unlike China, on September 8, 2021, the Verkhovna Rada supported Bill №3637 “On Virtual Assets.” Now, by the decision of President Zelensky, it has been vetoed and sent back for revision. According to experts, the changes concern part of the document on regulatory bodies. The control of virtual assets is proposed to be referred to the competence of the National Securities and Stock Market Commission.
In general, the Law regulates the cryptocurrency industry, and soon participants in the market for such assets will be able to legally exchange and declare them. The real goal is to create an ecosystem for international crypto companies — they will be able to register a business in Ukraine. The document defines the concept and legal status of a virtual asset, as well as issues of ownership and transactions with such assets in Ukraine. Moreover, the formation of a market for intermediary services for payment, storage, exchange of cryptocurrencies will expand the possibilities of their use. The law still needs to be finalized, and Dmitry Yakovlev from IBOX BANK pointed out unsettled aspects last week during a speech at the AUB Financial Monitoring Forum. However, for Ukraine, this is still a step forward, especially considering how actively the cryptocurrency market is developing in Ukraine.
Of course, this is not all the news related to the crypto industry. However, for me, they define the future of digital assets in Ukraine. We are seeing the active engagement of virtual currency tech leaders as they strive to add new user experiences and expand the market. In turn, the attitude of states towards payments with digital assets is very ambiguous. Some of them close the market for crypto assets (China), others recognize them as a monetary unit (Germany), others define assets like property and pay VAT when they are sold (Israel, USA), and the rest stimulate and encourage the formation of the crypto market (Switzerland, New Zealand, United Kingdom). Ukraine is burning with innovations, so the fate of China is unlikely to await us. Let’s follow up.