War-torn Ukraine signs law making crypto currency legal

It is expected that digital donations in the form of crypto will help Ukraine in these times of war

In case you have been following the cryptocurrency arena, you might have come across the news that the Ukraine parliament passed a bill to legalize cryptocurrency a month ago. The bill aimed at readying a framework towards regulation and management of cryptocurrencies such as Bitcoin and Ethereum.  The bill has become a law, with Volodymyr Zelensky, the President of the country facing Russian invasion, signing it into law.

Termed ‘On Virtual Assets’, the law establishes a legal framework for the country to operate a regulated crypto market, said a report in this regard.  After the Parliament adopted the bill on virtual assets, it was expected that President Zelensky would sign it into law without delay. And with this finally happening, Ukraine has fulfilled its wish of turning friendly with virtual assets.

Law allows banks to open accounts for crypto firms

The law being adopted means it would help Ukraine during these times of war, when other assets are on the wane. With the new legislation, crypto exchanges and firms handling digital assets are expected to line up towards registering with the government so as to operate legally in Ukraine. Besides, the nation will also allow banks to open accounts for crypto firms.

Ukraine’s National Securities and Stock Market Commission will now be empowered by the law to possess the ability to determine the nation’s policies on digital assets, and also issue licenses to businesses dealing with crypto. The Commission will also have powers vested in it to act as a financial watchdog.

Though the people of Ukraine had been dealing in crypto already, the law makes it smoother and hassle-free. It had earlier been reported that Ukrainians had not waited for formal regulation and had been active retail users of digital currencies going by the stats during the fall of 2020 had come out.

Army could find relief through donations

It is being expected that the new law would allow Ukraine to receive close to $100 million in cryptocurrency donations at a time when Russia is actively going ahead with its military operation in the country. The law will also allow Kuna, Ukraine’s first cryptocurrency exchange, to convert crypto to much-needed assets apart from helping it spend the donations directly with cryptocurrency-friendly suppliers. Ukraine is also reportedly partnering with Bahamas-based exchange giant FTX to convert crypto contributions to Ukraine’s war effort into fiat for deposit at the National Bank of Ukraine, the report added.

Ukraine has already been able to raise $55 million, and the proceeds will go towards fulfilling the needs of the Ukrainian army during these times of war.

Sanjeev Ramachandran

A journalist with 23 years of experience, Sanjeev has worked with reputed media houses such as Business Standard, The Ne More »
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