The country’s National Securities and Stock Market Commission would create policy on digital assets, grant licences to cryptocurrency companies, and operate as a financial watchdog.
Ukraine’s president, currently residing in Kyiv, Volodymyr Zelenskyy, has signed a law establishing a legal foundation for the country to operate a regulated crypto market.
Ukraine’s Ministry of Digital Transformation announced on Wednesday that Zelenskyy had signed a bill titled “On Virtual Assets,” which was initially passed by the country’s legislature, the Verkhovna Rada, in February. To operate lawfully in Ukraine, crypto exchanges and firms managing digital assets will be required to register with the government, and banks will be able to open accounts for crypto firms.
The law gives Ukraine’s National Securities and Stock Market Commission the authority to create the country’s digital asset rules, grant licences to crypto firms, and function as a financial watchdog. Ukraine’s Ministry of Finance is also seeking to alter the country’s tax and civil regulations to meet the legal framework for digital assets, according to the government agency.
“The president’s signature of this bill is yet another crucial step toward bringing the crypto sector out of the shadows and establishing a legal market for virtual assets in Ukraine,” the Ministry of Digital Transformation stated.
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. pic.twitter.com/lqqO1J9r1k
— Міністерство цифрової трансформації України (@mintsyfra) March 16, 2022
Following the invasion on February 24, cryptocurrency has become a big issue in Ukraine’s present war against Russia, with many people donating directly to the country for humanitarian needs and military finance. The National Bank of Ukraine announced at the time that it had restricted cash withdrawals from banks, set the hryvnia’s foreign exchange rate, and halted the issuance of electronic money.
On Monday, Kuna, Ukraine’s largest crypto exchange, collaborated with FTX, Kuna, Everstake, and the Ministry of Digital Transformation to develop a donation platform that allows users to send multiple cryptocurrencies “to support individuals in their battle for freedom.” At the time of publication, users had sent more than $54 million in cryptocurrency, accounting for around 27% of the platform’s $200 million target.
Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.