Ukraine legalizes Cryptocurrency as Relief Donations continue to Increase

The President of Ukraine, Volodymyr Zelenskyy, has officially legalized his country’s cryptocurrency sector. The decision follows the tens of millions of dollars Ukraine received via crypto donations from individuals and groups hoping to aid the country’s war efforts against Russia.

The bill was approved last month by Ukraine’s parliament as it “creates conditions for the launch of a legal market for virtual assets in Ukraine.” Legalizing cryptocurrency has allowed Ukrainian banks to open accounts for crypto firms and has appointed the National Bank of Ukraine and the National Commission on Securities and Stock Market as “watchdogs” for the sector. According to CoinTelegraph, crypto exchanges and companies that handle virtual currencies will need to register their operations with the government. Furthermore, the state has vowed to protect cryptocurrency holdings with the same standards as its fiat currency, the hryvnia.

Ukraine’s Vice Prime Minister, Mykhailo Fedorov, has stated that the law will “bring the crypto sector out of the shadows.”

“With the beginning of the war, cryptocurrencies became a powerful tool for attracting additional funding to support the Armed Forces of Ukraine,” wrote Fedorov.

“In more than three weeks of [the] war, the Crypto Fund of Ukraine has raised more than $54 million in cryptocurrencies.”

Cryptocurrency has had a significant role in the war between Russia and Ukraine. While Ukraine has received millions in crypto donations, some believe that Russia plans to use crypto as a hedge against financial sanctions. Additionally, Ukraine citizens have reportedly been increasing their crypto investments as the domestic exchange, Kuna has surged 200% following Russia’s invasion.

Source: The Verge