Ukrainian President Volodymyr Zelenskyy recently signed a new bill that makes cryptocurrency activity legalizes in the country. However, the state does not make the asset class legal tender.
The endorsement came not without reason. However, Ukraine has received tens of millions of crypto donations since Russia’s war with the country began. This move allows national and foreign crypto exchanges to operate legally and gives banks the authority to open cryptocurrency accounts.
Ukrainian President Volodymyr Zelenskyy has enacted a law that officially makes cryptocurrency legalized in the beleaguered country. The Ukrainian government has also created a program that allows people to donate reinforcements in the form of cryptocurrencies.
“This new law is an additional opportunity for business development in our country. President Ukrainian crypto companies will operate legalizes activity cryptocurrency. While Ukrainian will have convenient and secure access to the global market for virtual assets.” Said Deputy Prime Minister-Minister of Digital Transformation Mykhailo Fedorov.
Crypt Comes to Save Ukraine Amid War Condition
The government has also said it is working to amend its tax laws to accommodate crypto assets. This move comes when crypto has become a savior for Ukraine in its ongoing conflict with Russia.
Ever since Russia invaded Ukraine, Ukrainians have relied heavily on cryptocurrencies as their financial tool to keep their money accessible. According to data by Bankless Times, Ukraine’s national currency, trading in the hryvnia paired with Bitcoin, has seen a volume spike of 258%.
Following the start of the Russian invasion of Ukraine, the Zelenskyy government actively encouraged donations in various cryptocurrencies to help fund weapons for Ukraine’s embattled armed forces. In what belief to be the first time crypto used in a war arrangement of this scale. Well-wishers worldwide have flooded the Ukrainian government with crypto donations of around $100 million (€90.9 million).
Bear in mind that the government demands crypto donations from individuals to support its military in the ongoing war against Russia.
Demand has seen a massive shift from individuals, crypto exchanges, and crypto billionaires. According to a recent update from blockchain analytics firm Elliptic. Ukraine has raised more than $63.8 million through more than 120,000 crypto asset donations.
What Does Law Ukrainian Say About Legalizes Activity Cryptocurrency?
The new law will put the responsibility for regulating the new crypto asset market under the National Commission on Securities and Stock Markets auspices. It also outlines fines for violations and legal protections for investors from scammers.
Speaking at the time of the vote in February, Mykhailo Fedorov, Ukraine’s deputy prime minister and minister of digital transformation, called the new law an “opportunity for business development in our country.”
Ukraine has also recently partnered with exchanges FTX and Everstake to launch a crypto fundraising site to benefit its military and humanitarian needs. The site currently has a total balance of $54.2 million at writing.
On March 4, Alex Bornyakov, Deputy Minister of Digital Transformation, said that $15 million (€13.5 million) of donations received – most of which send in Bitcoin and Ether – had been spent on non-lethal military equipment, including bulletproof vest.
Cryptos have been in legalizes cryptocurrency limbo for some time in the Ukrainian President. Neither legal nor banned due to the lack of laws defining them and their use. However, buying and trading cryptocurrencies license. There are no legal provisions to help those who are victims of fraud.