Ukraine: prospects for cryptocurrencies in 2020 way to buy bitcoins in Ukraine

bitcoin in Ukraine

Since the launch of the first Bitcoin startups, Bitcoin currency exchanges and other services began to form very quickly, facilitating the processes of user interaction with cryptocurrency. As their number grew, so did the Bitcoin coverage area, and now the cryptocurrency is available to almost every user anywhere in the world. The coins received from mining can be exchanged for other electronic currency, cashed out, purchased goods and services, and for those who, on the contrary, want to transfer part of their capital into bitcoins, there are many ways to buy them. Ukraine has become no exception for the popularization of cryptocurrencies.

Bitcoin in Ukraine is distributed by enthusiasts, specialists from various fields of economic and web activity, who have organized their own service has been operating in the Ukrainian instant payments market since 2013 and offers Ukrainian users technologies for accepting payments through 24-hour terminals. Service specialists have discovered a high level of demand for alternative ways to purchase Bitcoin in Ukraine. After this, a test project was launched, designed to accept payments through terminals. After analyzing the terminal usage statistics, it was safe to say that the new payment acceptance points were in high demand by users. Based on the opinions and wishes of the service’s clients, a service for selling bitcoins in Ukraine for hryvnia was launched in test mode with the implementation of crediting funds to a bank plastic card. At the moment, bitcoins in Ukraine can be purchased in cash at one of more than 4 thousand terminals throughout the country. The service is issued by the Ukrainian bank National Credit. In any major city, a terminal can be found at almost every step, which further simplifies the process of buying bitcoins in Ukraine .

Regulation of the cryptocurrency market in Ukraine

I will express my humble opinion in connection with attempts to introduce regulation of cryptocurrencies and cryptocurrency markets by the state.

Let me make a reservation right away that we are talking about cryptocurrencies themselves, such as Bitcoin, Ethereum, Dash, Monero, etc. and does not apply to tokens and ICOs.

In October, the Ukrainian parliament received two bills related to the regulation of the cryptocurrency market. This is the bill “On the circulation of cryptocurrencies in Ukraine” authored by a group of people’s deputies (Efremova I.A., Denisova L.L., Kotvitskaya I.A., Rybak I.P. and Voitsekhovskaya S.M.), as well as the bill “On stimulating the market for cryptocurrencies and their derivatives in Ukraine” by People’s Deputy S.V. Rybalko.

Without going into a deep legal analysis of these bills, I would like to note the following.

States of the world, not only Ukraine, for the first time encountered such large-scale decentralization as cryptocurrencies. Being at its core a value transfer technology that is not controlled by a single financial center, cryptocurrencies based on a public blockchain can, in the long term, replace national money and the usual financial intermediation of banks . This creates threats to the state monopoly on money and its circulation.

The problem is that cryptocurrencies based on a public blockchain, especially ones as large as Bitcoin , cannot be controlled and regulated. They are built on peer-to-peer networks that do not have a single control center, and therefore no failure. You can’t just go ahead and ban cryptocurrencies! This will require, at a minimum, to turn off the Internet and/or electricity everywhere in the world.

The second problem is that cryptocurrency transactions are either pseudonymous or completely anonymous. And states have no direct ability to control these transactions . It’s possible to track it somehow, but it’s not possible to control it.

Therefore, any attempts by the state to regulate cryptocurrencies themselves, their emission and their transactions are doomed to failure.

Bitcoin itself , as an electronic cash system, was created as an alternative to the current financial system , which is monopolized and controlled by the state. Since its inception in 2009, Bitcoin has been outside the legal framework and should remain there.

But, the state can regulate the area in which cryptocurrencies come into contact with fiat money, namely, cryptocurrency exchanges and other financial institutions that provide services in the cryptocurrency market.

Both Ukrainian bills establish similar regulation, but the regulators in them are different bodies.

In the bill authored by a group of people's deputies (hereinafter, for convenience, I will call it the bill of Efremova and Co. ), such a body is the National Bank of Ukraine . In general, according to Article 3 of this bill, “ state management in the sphere of circulation of cryptocurrencies is carried out by the National Bank of Ukraine .

how the National Bank will manage and regulate the circulation of cryptocurrencies . This is not clear from the proposed bill.

And the very definition of the term “cryptocurrency” in the Efremova & Co. bill speaks of, to put it mildly, a not entirely complete understanding of the essence of this phenomenon.

I quote:

cryptocurrency is a program code (a set of symbols, numbers and letters), which is an object of property rights that can act as a means of exchange, information about which is entered and stored in the blockchain system as accounting units of the current blockchain system in the form of data (program code);

I re-read this definition several times, but still did not understand what the authors wanted to say.

First, this definition confuses two different concepts - data and program code . Secondly, cryptocurrency (if it means a unit of account on a public blockchain) is certainly not a program code, much less an object of property rights.

And there are many such blunders in the bill of Efremova and Co. This suggests that parliamentarians are not yet ready to understand the essence of cryptocurrencies and it is necessary to involve experts from the crypto community in the development of such bills.

By the way, this bill does not establish the economic essence of cryptocurrency. What's this? Money? Assets? Product? Or something different?

In contrast to Rybalko’s bill, by which cryptocurrency “for the purposes of legal regulation is considered a financial asset .

But, let’s return to the regulatory authorities of the cryptocurrency market in Ukraine.

Article 6 of Sergei Rybalko’s bill provides that state regulation of the cryptocurrency market and the activities of professional participants on it is carried out by the Regulator .

The regulator is a state body that carries out state regulation and supervision of activities in the markets of non-banking financial services on an individual and consolidated basis within the limits and manner provided for by the Law of Ukraine “On Financial Services and State Regulation of Financial Services Markets”.

According to Rybalko’s bill, the Regulator does not manage the circulation of cryptocurrencies, as in the bill of Efremova and Co., but establishes the organizational and legal basis for the activities of professional participants in the cryptocurrency market; deals with licensing the activities of crypto exchanges and other financial institutions that provide services in the cryptocurrency market; exercises control over their activities, etc.

Those. The regulator does not try to interfere with the circulation of cryptocurrencies itself , but regulates and supervises the activities of financial organizations that provide services in the cryptocurrency market. And I consider this a positive aspect of Rybalko’s bill.

Both bills establish state regulation of the activities of cryptocurrency exchanges .

At the same time, the definition of a cryptocurrency exchange in no bill does not include an exchange that carries out trading (in fact, exchange) exclusively in cryptocurrencies (without fiat currencies in pairs).

In Rybalko’s bill:

crypto exchange is a legal entity that has the status of a financial institution and provides all types of financial services in the cryptocurrency market.

Since the exchange of cryptocurrencies in pairs cannot be called a financial service, crypto exchanges operating without fiat do not fall under this definition of the bill.

In the bill of Efremova and Co.:

A cryptocurrency exchange is an organization that ensures the relationship between subjects of cryptocurrency transactions, ensures the exchange of cryptocurrencies for electronic money, currency values, and securities.

And here there is no exchange of cryptocurrencies for cryptocurrencies.

Purchasing bitcoins in Ukraine

To purchase bitcoins through terminals, the user must do the following:

  • Find the nearest and most convenient terminal for replenishment;
  • In the terminal menu, select account replenishment in the service;
  • Enter the desired replenishment amount (the minimum payment is 50 hryvnia, terminal commission is 1% with a minimum of 2 hryvnia);
  • If you need to receive an activation code, provide your mobile phone number;
  • Receive a receipt with a new activation code, the received receipt should be saved;
  • On the service website, enter the activation code you received earlier, then indicate the desired address in the Bitcoin system. The ordered number of coins will be sent to the user automatically.

The main advantages when working with the service:

  • Complete anonymity. When making transactions through the service, the user does not need to provide his personal data;
  • Operational processing of transactions. A large network of terminals, together with fast payment processing on the service’s website, will allow you to top up your Bitcoin account in a short time;
  • Guaranteed high level of security and data protection along with a guarantee of the safety of user funds;
  • The work of the service for carrying out transactions with bitcoins in Ukraine is fully consistent with the legislation of the country.

The company is interested not only in making a profit from transactions carried out, but also in the general development of the Bitcoin cryptocurrency in Ukraine. Already, statistics on completed payments to Bitcoin wallets indicate the need for such a service, however, still needs to grow, since many users are not yet familiar with this method of buying Bitcoins in Ukraine .

How to withdraw cryptocurrency?

When answering the question of how to withdraw Bitcoin, you must first consider the basic methods. Typically, three output options are used:

  • through a crypto exchange;
  • through an exchanger;
  • cashing out.

Let's look at each method in more detail.

Many cryptocurrency exchanges have functionality for direct withdrawal of money to a card. However, the main disadvantage lies in the fact that the world’s leading crypto exchanges do not work with hryvnia. If you are happy with withdrawals in dollars or euros, you can use the services of market giants such as Binance or Bitfinex. If you are only interested in hryvnia, you will have to conduct the exchange through a Ukrainian crypto exchange. Here is a list of the most popular and most reliable cryptocurrency exchanges:

  • KUNA;
  • Obi,co;
  • BTCZoo;
  • UA-BIT.

If for some reason withdrawal through a crypto exchange does not suit you, you can withdraw through an exchanger. However, you need to be extremely careful here. Today, a huge number of online exchangers have appeared that simply engage in fraud. Therefore, you should choose extremely carefully. We recommend not using little-known sites, and if for some reason it is impossible to use a proven service, read reviews of an unfamiliar resource. The most popular Ukrainian exchangers are:

  • Exchanger1;
  • Bit-Exchanger;
  • CryptoBox;
  • Cryptoexmoney;
  • uSale;
  • Ultrachange.

If you do not want to withdraw money to a card, then you can try the third option - cash. However, in reality this method is very rare; many exchangers prefer to work by bank transfer.

Cryptoexmoney - withdrawal both to card and in cash

If you are looking for a fast and reliable way to withdraw Bitcoin, the new generation exchange Cryptoexmoney is ready to help. We offer you any convenient methods, including withdrawal to a card or cashing out. Withdrawal of funds is possible both to Privat24 and to a card of any other bank. An important advantage of this method is speed. By trusting Cryptoexmoney, you can receive your money instantly.

In addition, we offer cryptocurrency cashing services. Our offices are located in Kyiv, Kharkov and Odessa. You can come to the nearest one, transfer BTC in the presence of a company employee, and receive your money from him. We offer cash withdrawals not only in hryvnias, but also in dollars, euros and other popular currencies. Cryptoexmoney is a quick exchange of any amounts at a reasonable cost. Trust us and get maximum profit from your investments in cryptocurrencies.

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