IMF Urges Ukraine to Finalize Crypto Legislation

[TomPluz]

The IMF has urged Ukraine to complete virtual asset legislation by the end of 2024 due to regulatory concerns and economic potential.

The International Monetary Fund (IMF) has urged Ukraine to finalize its update of legislation regarding virtual assets by the end of 2024, according to a Facebook post from Oleksandr Bornyakov, a deputy minister of digital transformation of Ukraine on IT industry development.

This requirement was outlined in the Memorandum of Economic and Financial Policies signed between Ukraine and the IMF, Bornyakov said, adding that the European international financial institution cited concerns about the current lack of regulation in the new sector, which poses risks to price stability and the effectiveness of monetary transmission.

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I am quite a bit interested with this development all because we know that in El Salvador this same IMF criticized the government of President Nayib Bukele when his administration made BTC as its official currency and reserve. There seems to be a softening of this assessment as they are seeing some good benefits of cryptocurrency for the economy and in the case of Ukraine which is still at war with Russia IMF is seeing it as a tool and an opportunity that can help its people and its economy to rebound in the midst of its gravest crisis ever.

[Kemarit]

Why is the IMF pressuring Ukraine though? I mean they are still at war right? What benefits will the Ukrainian government will get if they finalized crypto legislation? I'm thinking that maybe after the war or during the war itself, maybe crypto will be the new gold and that it will help Ukraine recover from the devastation of war.

On the other hand, we have heard a lot of Ukrainian hacking and scamming groups being dismantled already, but still they become a safe haven for this criminals. So perhaps hardening their crypto laws might give them more tooth on combating this groups and give then harsher punishment.

[Charles-Tim]

I am quite a bit interested with this development all because we know that in El Salvador this same IMF criticized the government of President Nayib Bukele when his administration made BTC as its official currency and reserve.

Although, I am in support of El Salvador and I knew IMF did not know what they were talking about when the organization against El Salvador moves as they made bitcoin a legal tender. I know IMF was saying rubbish. But this is different. Not that Ukraine made bitcoin or any other cryptocurrencies a legal tender but IMF need Ukraine to have laws that will minimize cryptocurrencies to be used for illegal activities in the country.

[Jating]

I am quite a bit interested with this development all because we know that in El Salvador this same IMF criticized the government of President Nayib Bukele when his administration made BTC as its official currency and reserve.

Although, I am in support of El Salvador and I knew IMF did not know what they were talking about when the organization against El Salvador moves as they made bitcoin a legal tender. I know IMF was saying rubbish. But this is different. Not that Ukraine made bitcoin or any other cryptocurrencies a legal tender but IMF need Ukraine to have laws that will minimize cryptocurrencies to be used for illegal activities in the country.

Yes, I think this might be the reason why IMF is pursuing Ukraine of all the countries to have a strong crypto legislation as they are one of the most open, and they are in the borderline or gray area as far as crypto goes, so neither it's legal or illegal and so there are a lot of Ukrainians who are taking advantage of this lax or no law at all. It's different when they look at El Salvador though, Bukele made it legal tender that IMF doesn't like. But in the case of Ukrainian government, before it gets out of hand, they wanted to have them a clear law. So in the end it might be good for the country itself.

[Z-tight]

I am quite a bit interested with this development all because we know that in El Salvador this same IMF criticized the government of President Nayib Bukele when his administration made BTC as its official currency and reserve. There seems to be a softening of this assessment as they are seeing some good benefits of cryptocurrency for the economy and in the case of Ukraine which is still at war with Russia IMF is seeing it as a tool and an opportunity that can help its people and its economy to rebound in the midst of its gravest crisis ever.

Take note that the two scenarios are both different, El Salvador made BTC a legal tender, that is not what the IMF is requesting that Ukraine do, they want them to regulate and tax crypto, because a continued lack of regulation increases the risk for their citizens.

If Ukraine ever decides to make BTC a legal tender (which i don't think they will), the IMF will surely be against it, they are talking about regulation, i.e. regulating crypto services that offer their service to Ukrainians.

[yhiaali3]

I am frankly surprised by the timing. It is certain that the International Monetary Fund is hostile to cryptocurrencies and does not want the Ukrainian government to legislate them. On the contrary, it wants it to establish strict laws to control cryptocurrencies in the country.

Yes, perhaps due to the state of war that Ukraine has been witnessing with Russia for years, there has become a great deal of randomness and lack of regulation of cryptocurrencies in Ukraine, but I do not think that this is a priority for the Ukrainian government at the present time.

The country is witnessing a state of war and great destruction. The war is continuing and no one knows when it will end, so I think this is not the right time for such a request at all.

[Charles-Tim]

I am frankly surprised by the timing. It is certain that the International Monetary Fund is hostile to cryptocurrencies and does not want the Ukrainian government to legislate them. On the contrary, it wants it to establish strict laws to control cryptocurrencies in the country.

I do not understand this. You said IMF do not want Ukraine to legislate cryptocurrencies but wants Ukraine to establish strict laws to control cryptocurrencies in the country and you used the word 'contrary'. That is not contrary but still the same thing. Anything about regulations is not what I can against but it should not be too strict like what European Unions are doing right now.

[ABCbits]

While end of 2024 is still far, it's weird IMF ask them to do that knowing they're still at war. Although on different viewpoint, it's good opportunity for IMF to make Ukraine pass strict law and reduce cryptocurrency adaption, since Ukraine still could use any help offered by IMF. I still remember IMF pressure El Salvador not to legalize Bitcoin as payment method.

[Z-tight]

I still remember IMF pressure El Salvador not to legalize Bitcoin as payment method.

Yes i remember too, centralized organizations and institutions like the IMF can never support a country legalizing BTC as a payment method, they would always be against it, though they are wrong with some of their reasons. What they prefer is for countries to regulate crypto and to have some type of control over crypto services and also for the reason of taxation.

[yhiaali3]

I do not understand this. You said IMF do not want Ukraine to legislate cryptocurrencies but wants Ukraine to establish strict laws to control cryptocurrencies in the country and you used the word 'contrary'. That is not contrary but still the same thing. Anything about regulations is not what I can against but it should not be too strict like what European Unions are doing right now.

Sorry, perhaps I did not use the appropriate language well, but what I meant is that the International Monetary Fund does not want Ukraine to enact laws to legislate or facilitate cryptocurrencies in the country, but rather it wants Ukraine to enact strict laws to limit the spread of cryptocurrencies.

In general, legislation is done either by enacting regulatory laws to facilitate or create a suitable work environment, or vice versa, that is, by enacting strict regulatory laws that prevent the freedom to work with cryptocurrencies, and I believe this second case is what the International Monetary Fund wants.