Ukraine’s President Volodymyr Zelenskyy authorized cryptocurrency by signing a bill on virtual assets into law amid the continuous conflict with Russia and a frenzy of digital asset funds to help the country defend against the invasion.
What the bill on virtual assets says?
The bill was initially proposed in September 2021, but President Zelensky requested revisions after meeting with legislators. The Ukrainian government presented the amended version of the bill for the first time on February 17. The legislation becomes official in the European country after its signature on Wednesday.
According to a statement issued by the Ministry of Digital Transformation, the legislation establishes the legal status, categorization, ownership, and regulators of virtual assets and the registration requirements for crypto service providers.
The National Commission on Securities and the Stock Market of Ukraine will regulate the market. Exchanges will be allowed to function legally, and banks will be able to create accounts for them, as tweeted by the digital ministry.
The government announcement on February 17 says that the state body is tasked with “shaping and pursuing a policy in the field of virtual assets; determining the order of circulation of virtual assets; issuing permits to virtual asset service providers; and carrying out supervision and financial monitoring in this area.”
Crypto a lifeline for Ukraine’s war effort
According to the latest figures, while Ukraine continues to combat the Russian invasion, the country has received about $100 million in Bitcoin contributions. Donations in crypto, including Ethereum, Bitcoin, Polkadot, Solana, and even the meme coin Dogecoin, have been received thus far.
It’s crucial to note that cryptocurrency was not outlawed in Ukraine before this news and the nation’s release makes no mention of making Bitcoin legal money in the country, indicating that today’s step is not comparable to what El Salvador has done.
The Ministry of Finance is now working on revisions to the country’s tax and civil regulations to completely open the market for virtual assets.
“The signature of this Law by the President is another crucial step towards bringing the crypto industry out of the shadows and establishing a legal market for virtual assets in Ukraine,” the Ministry of Digital Transformation of Ukraine said in its announcement of the law’s signing.
