Cryptocurrencies are playing a very important role in the war-torn country amid Russian attack on Ukraine. Ukraine has reportedly received more than $100 million (about Rs 758270,000) in cryptocurrency donations since the crisis began last month.
However, cryptocurrencies were not legal in Ukraine. But now it’s done. Now, President Volodymyr Zelensky has signed a law to legalize cryptocurrencies. This means that Ukraine can now buy anything from suppliers who deal in cryptocurrencies.
Ukraine, which is fighting a war with Russia, has decided to establish a legal framework through which cryptocurrencies in the country can be operated in a regulated ecosystem. That is, the government can use it according to its law. The country’s parliament passed legislation to legalize cryptocurrencies in February, and its president, Volodymyr Zelensky, signed the law on Wednesday.
What is Ukraine’s new law regarding cryptocurrencies?
According to CoinDesk, the new Ukrainian law on cryptocurrencies sets out the legal status, classification, ownership and regulators of virtual assets, in addition to establishing registration requirements for cryptocurrency service providers. Ukraine’s Ministry of Digital said in a tweet: “From now on, foreign and Ukrainian cryptocurrency exchanges will operate legally and banks will open accounts for crypto companies. This is an important step towards the development of the VA (Virtual Assets) market in Ukraine.” Is.”
The cryptocurrency market in Ukraine will be regulated by its National Securities and Stock Markets Commission – the equivalent of India’s SEBI. Under the new law, the Ukrainian securities regulator will also have powers to set policies on digital assets, issue licenses to businesses dealing with cryptocurrencies, and act as a financial watchdog.
Why did Ukraine need cryptocurrency?
Ukrainians have been one of the most active retail users of cryptocurrencies, and legalization of these digital assets was discussed in the country before, but now this decision has been taken in view of Russia’s military action in Ukraine.
A TechCrunch report stated that Ukraine’s first crypto exchange, Kuna was the only exchange so far that helped Ukraine buy anything from suppliers taking crypto. But with the new law, Kuna was no longer a sole. The country has also partnered with Bahamas-based exchange FTX to spend the cryptocurrencies now donated and the country to deposit crypto contributions to Ukraine’s war effort at the National Bank of Ukraine. This move of Ukraine can increase Russia’s concerns. Because a much smaller country than Russia will now have another means of spending.