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Historic week for cryptocurrencies

2021-09-10T20:46:35.341Z


El Salvador adopted Bitcoin as legal tender, and now in Ukraine a law has been passed to regulate it. Crypto furor.


09/10/2021 12:40

  • Clarín.com

  • Economy

Updated 09/10/2021 12:40

The crypto world arouses attention, for good or bad, it is not indifferent.

This week there were news at a global level around cryptocurrencies.

In Ukraine a law was passed to regulate them, and El Salvador adopted it as legal tender.

Even so, the price of the most famous cryptocurrency suffers constant fluctuations.

In the week after days of sustained increases, and after breaking the

US $ 51,000

barrier

again, the cryptocurrency lost ground again and is now trading at the US $ 45,000 barrier.

The latest development is that the Parliament of Ukraine adopted the bill

"on virtual assets

", which legally recognizes cryptocurrencies in the country for the first time.

The legislation is based on existing standards developed by the intergovernmental policy-making organization, the Financial Action Task Force on Money Laundering (FATF).


Ukraine's Ministry of Digital Transformation

will be tasked with overseeing the implementation of the new

virtual asset

regulation

and guiding the growth of the industry, in accordance with “international standards”.

The provisions of the new law recognize virtual assets as intangible assets

, which can be insured and uninsured.

However,

cryptocurrencies are not accepted as a legal means of payment

in Ukraine and their exchange for other goods or services will not be allowed.

The law introduces the term

“virtual financial assets”

that must be issued by entities registered in Ukraine.

In case these assets are backed by currencies, they will be regulated by the National Bank of Ukraine (NBU), the country's central bank.

If the underlying asset is a security or a derivative, the National Securities and Exchange Market Commission (NSSMC) will be the main regulator.

Anastasia Bratko, from the Ministry of Digital Transformation, clarified that this law allows companies to launch virtual asset markets in Ukraine and allows banks to

"open accounts for cryptocurrency companies."

"

Ukrainians will also be able to declare their income in virtual assets," he

said, adding that the law

"guarantees judicial protection

of the rights of owners of virtual assets."

What about bitcoin in El Salvador

The other case is what happened in El Salvador this week, that Bitcoin was adopted as legal tender.

The country chaired by Neyib Bukele was the first country in the world to adopt the most famous of crypto as its official currency.

"El Salvador has the right to advance towards the first world,"

announced the Salvadoran president in the pre-announcement.

The start was not auspicious, it started with the fall of the system and protests in the streets.

Bukele has spoken on his Twitter account to explain that the implementation of bitcoin in the Salvadoran economy will have a

"learning curve" and that "everything will not be achieved in a day, or in a month."

The International Monetary Fund does not share the position of the Salvadoran president regarding the benefits of the decision.

Not only did he openly criticize the adoption of this cryptocurrency in the country, but he also warned about the risks it can cause on the economy.

From that decision, Salvadorans through a digital wallet called "Chivo Wallet" can make use of crypto.

Citizens will be able to withdraw dollars, using this application,

in 200 ATMs called "goat points" installed throughout the country.

"The use of Bitcoin will be optional.

That is,

no one is going to receive Bitcoin if they do not want it for any type of payment, "

said the president on Thursday in a message issued by the state radio and television network to give details of the Bitcoin Law and clarify doubts about its use. .

Local news

Little by little companies appear that begin to accept crypto to cancel their sales.

Now, La Esquina del Pumático, a firm that sells tires, accessories, rims and services for vehicles, will allow its clients to pay with any of the

cryptocurrencies

that appear available on the Binance platform.

As the company announced in a statement,

it is the first case in the mass-selling sector to dare to accept cryptocurrencies

as means of payment.

The option will be available in the 11 branches of the company, distributed in the Federal Capital and the North and West areas of the province of Buenos Aires.

How will it work?

To pay in this mode, customers will agree with the staff the conditions of the service in equivalent value in pesos.

Then, the price will be defined online in bitcoins, or in one of the more than 350 cryptocurrencies available through Binance.

Then, the person responsible for the sale will tell the customer

how to make the payment through a virtual wallet

and, once the transaction is verified, it will be executed as a traditional purchase or sale.

YN

Look also

Pay with crypto: a tire company to start accepting digital currencies from the Binance platform

Source: clarin

All business articles on 2021-09-10

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