Ukraine’s President Volodymyr Zelensky has signed the bill seeking to legalize cryptocurrencies in the country, into law. The bill tagged “On Virtual Assets”, establishes a legal and regulatory framework for the operation of cryptocurrencies (and related activities) into law.
The establishment of cryptocurrencies comes about a month after the Ukrainian parliament passed a bill to legalize cryptocurrencies in the country, and amid tension being faced from Russia.
In an earlier interview, the country’s Vice Prime Minister and Minister of Digital Transformation Mykhailo Fedorov said that “The Parliament has adopted a law on virtual assets. I think the president is about to sign it into law in a matter of days. So we strive to be as friendly to virtual assets as possible. And we are continuing this effort during wartime as well,” intimating that the crypto bill would soon be passed into law.
For Ukraine, this an important step forward. Not only will the crypto law help its stay at the frontline with other countries in terms of cryptocurrency and its development, it means that cryptocurrencies, their providers and investors are under the coverage of the government. It is also a big win for Ukraine as a state which has been receiving donations in cryptocurrencies following an attack from Russia. Cryptocurrencies have become a pillar and a catalyst providing support for the country and its military as it goes head to head with Russia.
Following this new law, cryptocurrency exchange platforms, companies and businesses identifying with cryptocurrencies will have to be registered under the country’s government if they wish to continue operating in Ukraine. Banks in the country have been given the prerogative to open accounts for these crypto firms, according to numerous reports.
The Ukrainian National Securities and Stock Market Commission will be in charge of regulating the country’s crypto space. It will be in charge of determining the country’s policies on digital assets, issuing licenses to crypto firms and businesses, as well as acting as a watchdog monitoring the activities of businesses and firms in the space.
The news of cryptocurrencies becoming legal in Ukraine may come as a surprise to many who must have already thought that cryptocurrencies were legal in the country. This is because the use of cryptocurrencies in the country was already prevalent without any formal framework for regulation, and this spiked following the conflict with Russia.
As of the beginning of the second week of the Russia-Ukraine conflict, the country had received more than $50 million in crypto donations. With the Russia-Ukraine conflict still ongoing, more crypto donations are expected to come in. The country has also launched a website in partnership with crypto exchange FTX and blockchain firm Everstake, to receive crypto donations from all over the world.