Ukrainian President Volodymyr Zelenskyy has signed the virtual assets bill, legalizing cryptocurrency in war-ravaged Ukraine. The legalization of crypto comes after a flurry of support poured in via crypto donations to support the nation’s defense against the Russian invasion.
Since the start of the war, cryptocurrency donations to Ukraine’s war efforts and defense have shot past $100 million.
A Legal Framework For Cryptocurrency In Ukraine
The announcement was made by Ukraine’s Ministry of Digital Transformation, which released a statement confirming the announcement that President Zelenskyy had signed the virtual assets bill. The signing of the bill allows the establishment of a legal framework for the adoption of cryptocurrencies in the country. Zelenskyy had previously rejected a previous version of the bill.
Details Of The Bill
The bill passed through parliament on the 17th of February and will look to define the classification, ownership, and legal status of virtual assets. The regulation of the crypto market in Ukraine will be under the purview of Ukraine’s National Commission on Securities and the Stock Market. The bill will also define the scope under which crypto exchanges and other virtual asset providers will be allowed to operate.
According to a tweet by the Ministry of Digital Transformation, banks in Ukraine will also be allowed to open accounts for cryptocurrency firms and exchanges.
“Ukraine has legalized the crypto sector — @ZelenskyyUa signed a law. From now on, foreign and Ukrainian cryptocurrencies exchanges will operate legally, and banks will open accounts for crypto companies. It is an important step towards the development of the VA market in Ukraine.”
Ukraine will also issue special permits to cryptocurrency exchanges, allowing them to operate in the country. Meanwhile, the Ministry of Finance will also look to amend the tax code, which could accommodate digital assets such as Bitcoin and Ethereum.
Ukraine Fast-Tracking Crypto Adoption
In the most trying and testing times for the country, Ukraine has turned to crypto in the country’s darkest period, quickly laying the groundwork for crypto adoption as donations to the currency in cryptocurrency grow at an astonishing pace. Since the beginning of the Russian invasion of the country, crypto donations to Ukraine have crossed $100 million. More than half of the donations received have gone directly to crypto wallets operated by the Ukrainian government. The government has already spent $15 million on critical gear and supplies and also plans on launching an NFT collection. However, details on the latter are rather vague at this point.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
