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On Wednesday the 5th of November, the cryptocurrency exchange giant Binance made an announcement. They stated that they had signed a Memorandum of Understanding (MoU) with the Digital Transformation Ministry of Ukraine in order to help them establish a possible legal framework for cryptocurrencies and virtual assets that Ukraine may use.
Binance sent out a blog post detailing the event. They stated that the move would help create an effective and transparent system for the legal transfer of any cryptocurrency or virtual asset through the use of blockchain technology. Binance further said that such a move would help the investment and business conditions within the country.
A Country Developing its Potential
The Ukranian Minister of Digital Transformation and Vice Prime Minister, Mykhailo Fedorov, gave a public statement about the matter as well. He shared his joy that Ukraine was finally in a position where the relevant authorities and markets are in understanding with the plans of regulation of the cryptocurrency market in Ukraine. Fedorov states that the plan is to finish the legal bills by the end of the year, where it will be presented to Ukraine’s parliament for approval.
Fedorov continued by saying that the Ministry has full intentions of providing a competitive and comfortable environment for Ukraine’s crypto industry. Through the signing of the MoU with one of the world’s largest cryptocurrency exchange platforms, Ukraine is allowing Binance to operate their business within its borders legally.
Cryptocurrency companies and Ukrainians alike are now capable of open and transparent operation, says Fedorov. The Minister welcomes Binance’s advice they so willingly gave the country regarding the formation of a legal framework and market regulations.
More Money for the Country
Changpeng Zhao, Co-Founder and CEO of Binance, had a few words to share about the move as well. He stated that Ukraine’s legislation and the relevant adoption of progressive laws in the sphere itself could be one of the critical factors in Ukraine’s economy growing in tandem with the industry. Zhao also said that if the crypto industry were booming in Ukraine, it would attract more investors into the fold.
On the 6th of November, Binance opened up a fiat onramp for the Ukranian Hryvnia (UAH) that allowed for deposits and withdrawals. According to a tweet given by Zhao himself, the buying and selling crypto through the use of UAH will be enabled on the 7th of November.
Boom, nice timing! Just a few hours ago, $UAH deposit and withdrawals are enabled on @binance. Buy/Sell of crypto using $UAH will be enabled tomorrow.
Check it out, #Ukraine! 🇺🇦🇺🇦🇺🇦 https://t.co/RPcrfyp3iF
— CZ Binance (@cz_binance) November 6, 2019
Binance’s Clever Play
What Binance has done is effectively secure itself as the “face” of cryptocurrency exchanges in Ukraine. Added to that, with a corporation taking part in Ukraine’s development of crypto legislation, they will have the ability to influence it to create a more favorable market for themselves. It’s a smart move from Zhao, but Ukraine will ultimately benefit from this. Zhao’s words, singing crypto’s praises and hinting that only success will come from this move, is a testament to that. The more money a country has, the more investors will be attracted to it. It’s a simple fact.