Ukrainian President Volodymyr Zelensky has signed into law a bill named “On Virtual Assets” that was approved by the country’s parliament a month ago. It established a legal framework for the country to operate a regulated crypto market.

The founder of Terraform Labs and Ethereum competitor Terra (LUNA), Do Kwon, has outlined plans to accumulate $10 billion worth of Bitcoin to add to the project’s stablecoin reserves. The reserves are set to support its UST stablecoin.

Leading cryptocurrency exchange Binance is looking into acquiring banks and payment processors in Brazil, according to its CEO Changpeng “CZ” Zhao, who added the company is looking to strengthen its 100-person team in the country.

CryptoCompare's Digital Asset Summit is returning on 30th March at Old Billingsgate, London. As Europe's flagship institutional summit for digital assets, this is the perfect opportunity to connect with key industry decision-makers and leading names in finance who are adopting and embracing the digital asset revolution.

Top stories in the Crypto Roundup today:

• Ukraine’s President Signs Law Legalizing Crypto
• Terraform Labs to Accumulate $10 Billion in BTC for Reserves
• Binance is Eyeing Bank and Payment Processor Acquisitions in Brazil
• Understanding Fiat Currencies and Bitcoin’s Supply Limit
• CCDAS Summit - Get 10% Off for Being a Loyal Reader

Ukraine’s President Signs Law Legalizing Crypto

Ukrainian President Volodymyr Zelensky has signed into law a bill named “On Virtual Assets” that was approved by the country’s parliament a month ago. It established a legal framework for the country to operate a regulated crypto market.

Cryptocurrency exchanges and companies handling cryptoassets will now be required to register with the government to legally operate in Ukraine, while banks will be allowed to open accounts for crypto firms.

The law also allows Ukraine’s National Securities and Stock Market Commission to determine the country’s policies on cryptoassets and act as a financial watchdog. Notably, Ukraine already ranked fourth in Chainalysis’ 2021 Global Crypto Adoption Index before the move.

The Ukrainian parliament passed a law legalizing cryptocurrencies back in September, but at the time President Zelensky vetoed the bill saying the country couldn’t afford a new regulatory body to manage it.

Zelensky’s approval of the new bill came after the country received over $100 million in cryptocurrency donations in the weeks since Russia started invading it.

Terraform Labs to Accumulate $10 Billion in BTC for Reserves

The founder of Terraform Labs and Ethereum competitor Terra (LUNA), Do Kwon, has outlined plans to accumulate $10 billion worth of Bitcoin to add to the project’s stablecoin reserves. The reserves are set to support its UST stablecoin.

Terra is a blockchain platform that accommodates algorithmic stablecoins, the largest one being TerraUSD (UST). It uses a Proof-of-Stake (PoS) consensus algorithm, and its native token, LUNA, uses a “combination of open market arbitrage incentives and decentralized Oracle voting” to maintain the stablecoin’s peg.

The value of UST is pegged to the value of the U.S. dollar, while the  USD value of LUNA is convertible with UST at a 1:1 ratio. If UST’s price drops below $1, arbitrageurs can swap 1 UST for $1 of USD and make a profit. When it goes over $1, they can trade 1 UST for $1 of LUNA to make a profit.

According to Kwon, UST backed by $10 billion in BTC would “open a new monetary era of the Bitcoin standard.” The BTC reserves are set to be used to backstop short-term UST redemptions and for a decentralized forex reserve.

Earlier this year the Luna Foundation Guard (LFG) announced it raised $1 billion through a private token sale to build a bitcoin reserve for the stablecoin. The funding round was led by Jump Crypto and Three Arrows Capital, and the reserve is set to increase the stability of UST.

Binance is Eyeing Bank and Payment Processor Acquisitions in Brazil

Leading cryptocurrency exchange Binance is looking into acquiring banks and payment processors in Brazil, according to its CEO Changpeng “CZ” Zhao, who added the company is looking to strengthen its 100-person team in the country.

Zhao’s words came after Binance signed a Memorandum of Understanding (MoU) to acquire Brazilian securities brokerage firm Sim;paul Investimentos. The exchange, Zhao said, is looking to work closely with regulators and government agencies to foster the development of the crypto industry in a “healthy and collaborative way.”

Pending legislation in Brazil would require cryptocurrency exchanges to be licensed, which could force them to either open a local office or acquire an existing firm.

Earlier this month, Zhao revealed Binance is looking to buy more companies in non-crypto industries to expand the appeal of cryptoassets.

Understanding Fiat Currencies and Bitcoin’s Supply Limit

While central banks throughout the world are able to increase the supply of their own currencies, only consensus in the Bitcoin network would allow for the 21 million limit to be raised.

Increasing the supply of a currency can have disastrous effects including hyperinflation, which describes the rapid and excessive price increases in an economy.

The term fiat is used to describe government-issued currency that isn’t backed by a physical commodity such as gold or silver. Its value is derived from the relationship between supply and demand – and a government printing in excess could see supply greatly outstrip demand.

A fixed supply ensures Bitcoin’s value is determined by supply and demand on the free market. This has at times meant bubbles formed rapidly, but it also meant they popped in a short amount of time and the market recovered naturally.

Bitcoin has, however, a small amount of inflation until the very last coin is mined. Its inflation is cut in half roughly every four years through. Read more via CryptoCompare’s guide on BTC’s supply limit.

CCDAS Summit - Get 10% Off for Being a Loyal Reader

CryptoCompare's Digital Asset Summit is returning on 30th March at Old Billingsgate, London. As Europe's flagship institutional summit for digital assets, this is the perfect opportunity to connect with key industry decision-makers and leading names in finance who are adopting and embracing the digital asset revolution.

Time is running out to secure your place at The CryptoCompare Digital Asset Summit! CryptoCompare readers can save 10%  today with code NEWSLETTER10. You can find more information here

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