Crypto exchanges increasingly decide to create tokens linked to local FIAT currencies. This time, the Ukrainian crypto exchange Kuna, announced the release of the UAX stablecoin. Last year, the President of Ukraine spoke in very positive words about blockchain technology.
Token Cryptohryvna or UAX is a 1:1 stablecoin linked to the Ukrainian hryvnia. A similar solution already exists on our domestic market. Polish crypto exchange Coinquista offers support in the form of PLX token. The Ukrainian crypto exchange Kuna has already introduced a UAH stablecoin linked to the hryvnia.
Cryptogryvna UAX and Ukrainian cryptocurrencies regulations
Token UAX was created on the Ethereum blockchain and supports ERC20 and ERC865 standards.
To maintain the stability and security of the UAX token, we use a method that allows us to maintain a single reserve ratio between a crypto UAX token and the related resource in a fiduciary currency. This method is called “Proof of Reserve” or “Proof of Reserve”.
There are currently open beta tests on the stock exchange. Their end is already scheduled for 03/20/2020. During this time a limited number of Kuna.io users and exchange partners will test the new stablecoin. Interestingly, technical tests are to be carried out not only on the exchange platform itself but also on DeFi platforms.
The official presentation of the project will take place on March 20 at the BlockchainUa conference.
As in Poland and Ukraine, there are currently no appropriate legal regulations concerning cryptocurrency type stablecoin. The founder of the Ukrainian exchange, Michael Kobański, said:
“There are no regulations so far. But we are the engine of this process in the country. At some point in the future there will be regulations in force that will clarify this process. At the moment we are using Kuna’s infrastructure. Once the law is in place, we will separate Kuna from the stablecoin xreserve.fund operator. ”
A year ago, the Ukrainian government launched a pilot program to introduce the National Bank of Ukraine (NBU), the Ukrainian e-hryvnia. Since then, work on the project has not gone too far. According to Khobanski, only one study was conducted.
In December 2019, the Ukrainian government approved the final version of the law on “money laundering”.
The new law contains some guidelines on how the government intends to monitor and regulate trade in cryptocurrencies. One of the guidelines focuses on individual cryptographic transactions worth less than 30,000 hryvnias ($1,300), from which the government will collect only the broadcaster’s public key for financial monitoring purposes.
The popularity of cryptocurrencies in Ukraine is growing year after year. The growing market needs legal regulations that would clearly and clearly define its status.