President Volodymyr Zelenskyy of Ukraine has signed a measure into law that effectively legalizes the bitcoin industry in the country. The decision comes as Ukraine has received tens of millions of dollars in bitcoin donations from individuals and groups seeking to aid the country’s war effort against Russia.
Zelenskyy’s measure was adopted by Ukraine’s parliament last month and “lays the groundwork for the establishment of a legal market for virtual assets in the country.” It authorizes Ukrainian banks to open accounts for cryptocurrency businesses and designates the National Bank of Ukraine and the National Commission on Securities and the Stock Market as the sector’s financial regulators.
The state asserts that it will provide residents with the same legal protection as its fiat money, the hryvnia.
Cryptocurrency is a major factor in the conflict between Russia and Ukraine. Apart from being a primary conduit for donations to Ukraine, it has been viewed as a possible lifeline for Russians who have been subjected to financial restrictions. Ordinary Ukrainians have also been increasing their purchases of crypto assets, with trading on the native exchange Kuna growing by 200 percent in the aftermath of the country’s invasion by neighboring Russia. While exchanging virtual assets for cash is frequently essential and cumbersome, legal recognition of the crypto sector should help alleviate some of these issues.
