Ukraine’s President , Volodymyr Zelensky, has signed a crypto bill called On Virtual Assets , which sets up the country’s legal framework for managing the regulated crypto market.
A month ago, the Verkhovna Rada approved this bill to legalize cryptocurrencies and prepare a framework for its regulation and management.
Platforms and companies dealing with digital assets are required to register with the government to operate legally in Ukraine. Banks are allowed to open accounts for crypto companies.
The law gives the National Securities and Exchange Market of Ukraine the ability to determine state policies on digital assets, issue licenses to companies that deal in cryptocurrency, and act as a financial regulator.
The Verkhovna Rada had previously passed a law legalizing cryptocurrency in September. But President Zelensky vetoed the bill shortly thereafter. He said at the time that the country could not afford to set up a new regulatory body to manage cryptocurrency.
Ukrainians, Russians and Venezuelans became among the active users of cryptocurrency by the fall of 2020. That was before there was official regulation.
Announcing the signing of the law, Ukraine’s Ministry of Digital Transformation wrote: “The President’s signature on this law is another important step towards bringing the crypto sector out of the shadows and launching a legal market for virtual assets in Ukraine.”
Ukraine legalizes the cryptocurrency industry
There are some trends that have brought Ukraine to the top. Including the large number of citizens working in the technology field and the diligent startup environment. The world has also sent an estimated $100 million in crypto donations to Ukraine since the Russian invasion.
With the new law in place, Ukraine’s first cryptocurrency platform, Kuna, is helping the country spend donations and convert cryptocurrency into fiat currency.
The country has also partnered with FTX to monetize crypto contributions for deposit in the National Bank of Ukraine.
FTX, Kuna, and Everstake partnered with Ukrainian government officials to launch a user donation site. The site accepts donations in Bitcoin, Ether, Tether, Polkadot, Solana, Dogecoin, Monero, Icon and Neo.
The New York Times spoke about Ukraine a few months ago, describing it as the cryptocurrency capital of the world.
We aim to become one of the best jurisdictions in the world for crypto companies,” Alex Bornyakov, the one-year-old deputy minister in Ukraine’s Ministry of Digital Transformation said at the time. We think this is the new economy, and this is the future. And we think that’s something that boosts our economy.
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