The President of Ukraine Volodymyr Zelenskyhas officially approved a bill that legalizes the cryptocurrency sector in the country. The decision comes at a time when there are tens of millions of dollars in donations that Ukraine has received to contribute to its efforts to repel the invasion they are suffering from Russia, from individuals and groups, through cryptocurrencies.
This proposal that Zelensky just approved was approved by the Ukrainian parliament last month, and «creates conditions for the launch of a legal market for virtual assets in Ukraine«. In addition, it allows Ukrainian banks to open accounts for cryptocurrency companies and designates the National Bank of Ukraine and the National Securities and Exchange Commission as financial controllers of the sector.
On the other hand, the approval of the law implies that cryptocurrency exchanges and companies that manage other virtual assets will have to register with the authorities, which, according to the government, will protect citizens’ cryptocurrencies with the same legal force. than its legal tender, the hryvnia. The signing of this law, as stated by the Prime Minister and Minister for Digital Transformation of Ukraine Mikhaylo Fedorovthrough Telegram, will also make the sector related to cryptocurrencies «come out of the shadows«.
According to Fedorov, «since the beginning of the war, cryptocurrencies have become a powerful tool for attracting additional funds to support the Ukrainian Armed Forces. In the more than three weeks of war, the Ukraine Crypto Fund has received more than 54 million dollars of donations in cryptocurrencies«.
Ordinary Ukrainians have also been buying more and more crypto assets in recent weeks, and the exchange rate on the local Kuna cryptocurrency market, which will now be able to convert cryptocurrencies to legal tender, has increased by 200% after the invasion. From Russia. The exchange of virtual assets for legal tender in the country to make purchases is still necessary, and not easy, but the legal recognition of the cryptoactive sector can help alleviate some of these problems.