Ukraine will soon legally recognize cryptocurrency, after President Volodymyr Zelenskyy signed a virtual assets bill on Wednesday. Under the new legislationUkraine will be able to establish a legal and regulated crypto market.
"From now on, foreign and Ukrainian cryptocurrency exchanges will operate legally, and banks will open accounts for crypto companies." Ukraine's Ministry of Digital Transformation tweeted on Wednesday. "It is an important step towards the development of the [virtual assets] market in Ukraine".
Approved by parliament on February 17, this was the second iteration of the draft law on virtual assets of Ukraine. Although parliament approved the first version last September, Zelenskyy vetoed it in October, in part due to the significant cost of establishing a new state regulator for cryptocurrency. The new draft law will empower the already existing National Securities and Securities Market Commission of Ukraine to take on this task instead.
Like any other corner of the Internet, cryptocurrency has been heavily involved in Russia's ongoing war with Ukraine. Some Ukrainians are turning to blockchain due to bank imitations triggered by the invasion, while the country has received almost $100 million in crypto donations to various groups and organizations. As of March 17, a official website of the ukrainian government soliciting donations has raised more than $55 million in cryptocurrencies.
On the other hand, experts have also expressed concern that Russia can use cryptocurrencies to circumvent international sanctions tax on it.
While cryptocurrency was not previously illegal in Ukraine, officially recognizing and regulating the currency opens up new avenues for trade and taxation. According to the TripleA crypto payment platform, about 12.7 percent of the population of Ukraine owned cryptocurrencies before Russia invaded.
Of course, most ukrainians probably have other concerns that take precedence over learning how cryptocurrency works right now.
