Despite its ongoing war with neighbouring country, Russia, the Ukrainian government has officially legalised cryptocurrencies and other virtual assets.
The new law was signed on Wednesday, March 16, 2022, by the Ukrainian President, Volodymyr Zelensky. The government made the announcement via a press release on its website.
The law specifies what is regarded as a crypto asset, registration requirements for crypto services providers in the country, and appointed the National Bank of Ukraine and its National Commission on Securities and Stock Market as crypto regulators.
According to Fortune, the bill on virtual assets was first introduced on February 17, 2022. It only took a month for it to be accepted and signed into law.
Ukraine has always been crypto-friendly; the eastern European country never banned Bitcoin and other cryptocurrencies; it just wasn’t recognised officially.
Speaking about the signing of the law, Ukraine’s Ministry of Digital Transformation said,
“The signing of this Law by the President is another important step towards bringing the crypto sector out of the shadows and launching a legal market for virtual assets in Ukraine.”
Ukraine’s support and quick legalisation might have been due to the amount of crypto donated to the country since the beginning of its war with Russia. Crypto publication, Coindesk, reports that the country has raised up to $100 million in crypto donations to support its defence and fund humanitarian aid.
Ukraine has seen firsthand the usefulness of cryptocurrencies and decentralised finance. Millions of people from all over the world were able to donate directly to the government in minutes. It is expected that more countries will adopt and legalise crypto and virtual assets in the coming years.
