Ukraine formally legalizes crypto after receiving over $100 million in support from the crypto community since its war with Russia started.
Ukraine’s president has officially signed the virtual asset bill to legalize cryptocurrencies for income, exchange, and business, as approved by parliament last month. This comes after weeks of financial support from the crypto community for help in fending off Russia’s invasion.
According to a statement from the Ministry of Digital Transformation of Ukraine, the new law creates conditions for a legal virtual asset market in the country. It will be regulated by the National Securities and Stock Market Commission, alongside the National Bank of Ukraine.
The commission will form and implement state policy on crypto, and issue permits to crypto service providers while financially monitoring the area.
The law also provides conditions for the registration of virtual asset companies, and for the formation of the legal field in the virtual asset market.
A different version of this bill was passed by parliament months ago but sent back by President Zelensky due to a provision for a new body dedicated to regulating digital assets. The new bill contains the presidents’ preferred amendments.
Ukraine is already one of the top 5 countries in the world for cryptocurrency usage, making the law’s approval somewhat overdue. It comes shortly after Dubai established its Virtual Asset Regulatory Authority, and after US President Joe Biden signed an Executive Order on crypto industry oversight.
Some have feared that crypto could weaken the West’s economic punishment against Russia, following its invasion of Ukraine last month. On the contrary, virtual assets have been overwhelmingly beneficial to Ukraine during the conflict, with the nation receiving over $100 million in crypto donations in less than a month.
The nation is even preparing to launch an NFT collection about the Russian war following a canceled airdrop.