So, in Ukraine, cryptocurrencies that fall under the law on virtual assets can be divided into three categories: electronic money tokens, tokens tied to assets and "other" virtual assets. The difference between the two isn't really that obvious, but let's try to break it down by looking at why these categories were enacted in the first place.
1. Electronic money tokens: Sounds like a cryptocurrency counterpart to your favorite plastic cards or electronic payments. These are the kind of coins that can be used as digital money, i.e. just a means for transactions. They don't even look like cryptocurrencies with fancy blockchain flash, because these tokens are backed by real money, such as hryvnias or dollars. They are, in fact, digital "money", only without a physical appearance. That is, the law may provide some level of regulation for such tokens, but they still remain outdated tools in a world of new technologies. And if you're used to Bitcoin freedom, it all looks a little boring, to say the least.
2. Tokens linked to assets: This is where it gets more interesting! These are tokens that have a real asset backing — for example, they can be tied to gold or even real estate. One would think that these are some kind of investment coins that can be held to preserve value. Similar to stablecoins, but with more specific assets behind them. The regulation of such tokens is precisely an attempt to ensure that your investments do not turn into financial phantoms and that the state can monitor them. But whether it will work when the assets are connected to the real world and market volatility is a big question.
3. Other virtual assets: Oh, everyone who could not be "prepared" for the previous categories was gathered here. Here you will find cryptocurrency itself (like Bitcoin $BTC or Ether $ETH ), tokens that are not tied to real assets or perform the functions of electronic money, and even NFTs. This is anything that does not fall under the precise rules of the first two categories. On the one hand, they can have great potential, because their value is often determined by market factors. But on the other hand, they can be extremely volatile and subject to the influence of government regulation, which is unlikely to benefit their investors.
Why is all this important? For the state, this is a big step towards finally starting to control cryptocurrency and being able to collect taxes from it. But from a crypto enthusiast's point of view, it looks more like an attempt to break the concept of crypto freedom, while creating even more obstacles and restrictions. Ultimately, anything that can be identified is subject to regulation, which means you may need to rethink your privacy and anonymity strategy in the world of virtual assets.
