Ukraine has passed legislation that establishes a legal framework for the country’s cryptocurrency business. According to the country’s Ministry of Digital Transformation, the bill, which was passed by Ukraine’s parliament last month and signed into law by President Volodymyr Zelenskyy on Wednesday, will allow foreign and Ukrainian cryptocurrency exchanges to operate legally. Banks will be permitted to open accounts for cryptocurrency businesses.
The legal status, classification, and ownership of virtual assets are all determined by the “virtual assets” law. Financial monitoring measures for virtual assets are also introduced. The legal status, classification, and ownership of virtual assets are all determined by the “virtual assets” law. Financial monitoring measures for virtual assets are also introduced.
The market will be regulated by Ukraine’s National Securities and Stock Market Commission. The agency will be in charge of giving licences to crypto firms and enforcing governmental regulation in the field, among other things. As Russia’s invasion of Ukraine continues, Zelenskyy has signed the law, highlighting the importance of cryptocurrency in the fight.
Last month, Ukraine began taking donations in digital currencies such as bitcoin and ether for its military defence against Russia. According to blockchain analytics firm Elliptic, it has subsequently expanded the number of cryptocurrencies it accepts for donations and has raised over $63 million. Ukraine’s government opened an official website earlier this week where people all around the world can donate using bitcoins.
Ukraine’s cryptocurrency law comes as governments around the world debate how to regulate the industry, with results that are often contradictory. El Salvador, for example, has made bitcoin a legal tender and aims to become a cryptocurrency hotspot. China, on the other hand, has made it a priority to eliminate cryptocurrency trade and mining.
President Joe Biden of the United States signed an executive order this month directing federal agencies to take a coordinated approach to the regulation and oversight of digital assets. The presidential order does not constitute law governing the bitcoin business.
Governments have pushed to put exchanges and other digital asset companies under the purview of financial regulators in numerous countries where there is no particular cryptocurrency law, such as Ukraine. In the United Kingdom, for example, cryptocurrency exchanges are required to register with the Financial Conduct Authority and are subject to existing money laundering regulations.
Ukraine’s approach, on the other hand, aims to create a law that is specifically geared to the digital asset industry.