Ukraine Legalizes Cryptocurrency Market – Indigo Buzz

The country has received millions in crypto donations since the start of the Russian invasion.

Ukraine will soon recognize cryptocurrency legally, after President Volodymyr Zelenskyy signed a bill on virtual assets.(opens in a new tab) Wednesday. Under the new legislation(opens in a new tab)Ukraine will be able to establish a legal and regulated crypto market.

“From now on foreign cryptocurrency exchanges will only operate legally and banks will open accounts for crypto companies,” Ukraine’s Ministry of Digital Transformation tweeted on Wednesday(opens in a new tab). “This is an important step towards the development of the (virtual assets) market in Ukraine. »

The tweet may have been deleted
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Passed in parliament on February 17(opens in a new tab), it was the second version of the Ukrainian draft law on virtual assets. While parliament approved the first version last September, Zelensky vetoed it in October(opens in a new tab), in part due to the significant cost of setting up a new state regulator for cryptocurrency. The new draft law will halt the already existing Ukrainian National Commission on Securities and Stock Market to take on this task instead(opens in a new tab).

Like every other corner of the internet, the cryptocurrency has become heavily involved in the ongoing war between Russia and Ukraine.(opens in a new tab). Some Ukrainians are turning to blockchain due to banking knockoffs caused by the invasion, as the country received nearly $100 million in crypto donations(opens in a new tab) to various groups and organizations. Since March 17, an official Ukrainian government website asking for donations(opens in a new tab) a raised over $55 million in cryptocurrency.

On the other side, experts have also expressed concern that Russia might use cryptocurrency to circumvent international sanctions.(opens in a new tab) imposed on it.

While cryptocurrency was not previously illegal in Ukraine, official recognition and regulation of the currency is opening up new avenues for trade and taxation. According to crypto payment platform TripleA, around 12.7% of Ukraine’s population owned cryptocurrency(opens in a new tab) before the Russian invasion(opens in a new tab).

Of course, most Ukrainians probably have other concerns that outweigh learning about how cryptocurrency works today.