The president of Ukraine, Volodymyr Zelenskyy, is going ahead with plans to establish a comprehensive legal framework governing crypto amidst a flurry of digital assets donations that are playing an essential role in the conflict with its eastern European neighbor Russia.
Ukraine’s Zelenskyy Signs Crypto Bill Into Law
Cryptocurrencies are now legal in the seventh-most-populous country in Europe.
President Zelenskyy signed a bill on virtual assets into law, legalizing bitcoin transactions within the country. The law, which was first adopted by the Ukrainian legislature on February 17, established what is deemed a crypto asset as well as ownership and the relevant regulators of crypto assets.
Crucially, cryptocurrency exchanges and other crypto-related companies will be expected to register with the government in order to be able to operate legally, and banks will have permission to open accounts for them, the country’s Ministry of Digital Transformation said in a Wednesday announcement.
The legislation also designates Ukraine’s National Securities and Stock Market Commission as the crypto market regulator. The state body is tasked with issuing licenses to crypto firms, creating national policies on virtual assets, and monitoring the nascent sector.
The Ministry of Digital Transformation posited in the statement: “The signing of this law by the president is another important step towards bringing the crypto sector out of the shadows and launching a legal market for virtual assets in Ukraine.”
The Ministry of Finance is now prepping to amend the country’s tax and civil codes to fully accommodate cryptocurrencies like bitcoin and Ethereum.
Ukraine and its beleaguered citizens have in recent weeks received aid from the crypto community as the war-torn nation defends itself against Russian attacks. Since the military invasion on February 24th, Ukraine has amassed more than $100 million in crypto donations earmarked for military support.
On Monday, Ukraine’s crypto-savvy Ministry of Digital transformation launched a new fundraising website called “Aid for Ukraine” in partnership with FTX, Everstake, and Kuna to help expedite donations to the country.