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Bitcoin, Cryptocurrency, Featured, News

Ukraine Sets Its Sights on Becoming the Global Crypto Capital

For years, Ukraine has been plagued with wars, rampant corruption, and scandals. The country is now looking to improve its economy and image by transforming into a global crypto capital. Capitalizing on the global boom in blockchains and cryptocurrencies is a logical approach. Multiple crypto setups are already operational within Ukraine.

Rising Crypto Adoption in Ukraine Attracts Foreign Crypto Investors

The growing resentment towards government-backed fiat currency has led several Ukrainians to switch towards cryptocurrencies. The small East European nation ranks 4th in the Global Crypto Adoption Index. Crypto trading volumes reach an annual $8 billion, with daily transactions reaching $150 million.   

For foreign crypto investors, the mesmerizing mix between low taxes, supportive government policies, and the availability of skilled resources make Ukraine an ideal crypto haven. There are over 100 operational enterprises dedicated to blockchain and cryptocurrency, and no dearth of developers and engineers.

Also Read: Increasing Crypto Job Opportunities For Engineers Boost The Global Crypto Market

Crypto Trading Benefits from New Legislations and Capital Taxes

The Ukrainian government headed by President Volodymyr Zelenskyy legalized Bitcoin acknowledging its global relevance in September 2021. Though still not a legal tender, the move is indeed a strong stance towards future crypto-centric policies.   

The government also devised attractive tax rates for crypto enterprises looking to invest in Ukraine. The tax slab is a simple 5% off of profits for both corporate businesses and individuals. To make things even more interesting, there is an additional grace period till 2025.  

Also Read: Ukraine Legalizes Cryptocurrency Accelerating Crypto Trade

Bitcoin Mining in the Proposed Crypto Capital

The transformation into a global crypto capital is impossible without mining considerations. Ukraine plans to make the best use of its natural cold climate for crypto mining purposes. Not all things are gifts of nature- the government provides the required financial backing as well. 

Bitcoin mining consumes energy harnessed from the Zaporizhzhia Nuclear Power Plant, near the Russia-Ukraine border. The national government is backing the project with a budget of $700 million. A second power hub is in the pipeline and will be built in the western part of Ukraine. The project is a partnership between Energoatom and Bitfury. The former is a Ukrainian atomic power company, while the latter is a company from the Netherlands specializing in Bitcoin infrastructure. 

Wrapping Up

Crypto-supportive policies along with the available resources make Ukraine a hotbed for decentralized trading. The current government believes in the game-changing potential of bitcoin and other digital assets, and plans to encourage foreign investments with necessary implementations and infrastructure. The ultimate aim is to transform Ukraine into a global capital for cryptocurrencies.

 

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