Ukraine Government Legalizes Cryptocurrency as it Receives Millions in Crypto Donations to Fight Russia

The government of Ukraine, under Volodymyr Zelenskyy Presidency, has signed a new bill that aims to legalize the cryptocurrency industry along with service providers operating in the country. 

This came up as Ukraine received digital crypto money donations worth millions of dollars from international groups and individuals hoping to assist the country in times of war, pulling the public from adverse situations.

However, the bill signed by the Ukrainian President was approved by the country’s parliament last month “creates conditions for the launch of a legal market for virtual assets in Ukraine.”  Under this bill, the local banks will allow cryptocurrency firms and virtual asset service providers to open accounts. Particularly appoints National Commission on Securities and Stock Market and the National Bank of Ukraine as the financial regulatory body for the digital currency market. This means that every business and online exchange providing or facilitating cryptocurrency transactions needs to get a license from the government. Moreover, the government has also publicly announced that the virtual assets and crypto coins held by locals will be protected as the fiat money is secured.

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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

Ukraine has legalized the crypto sector — @ZelenskyyUa

Mykhailo Fedorov, the country’s Minister of Digital Transformation and Vice Prime Minister stated that this law will help the cryptocurrency industry to become mainstream. “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.” 

However, cryptocurrencies are playing a crucial part in Russia’s invasion of Ukraine. Along with the prime component for donations to Ukraine, it’s been pretty much notable that Russia has been hit with major financial sanctions from almost every jurisdiction. For this reason, and with cryptocurrency being legalized, now locals are buying digital currencies, hence the trading transaction on the local crypto exchange Kuna has experienced a 200% increase in the number of customers.