Ukraine Moves to Legalizing Crypto After Receiving Massive Donations Post Russia’s Invasion

War-torn country Ukraine has been the recent one to join the list of countries where crypto is legal. The decision comes amid the wake of Russia’s invasion following which the country has secured nearly $100 million in crypto donations so far.

However, it was last month that Ukraine’s parliament passed the bill to legalize digital assets thereby preparing a framework for the regulation and management of digital assets such as Bitcoin.

On Wednesday, March 16, Ukrainian President Volodymyr Zelenskyy signed the bill into a law thereby establishing a legal framework for digital assets in the country. This means that crypto-focused outlets, exchanges, and other firms handling digital assets will have to register with the government. Furthermore, banks will be legally allowed to open bank accounts with crypto firms.

As per the law, Ukraine’s National Securities and Stock Market Commission will have the ability to determine the country’s policies on digital assets. The Commission will serve as a financial watchdog and will be able to issue licenses to businesses dealing with crypto.

Speaking of this historic decision from Ukraine, the country’s Deputy Minister of Digital Transformation - Alex Bornyakov said: “The law “on virtual assets” was signed today! Now crypto is legalized in Ukraine. Thank you, President @Zelenskyy for the support. We believe that crypto industry offers new economic opportunities. We will do our best to bring the bright new future closer as soon as possible”.

Even if we keep aside Russia’s recent invasion, Ukraine has got a "really tech-native population,” and "industrious startup environment”. Ukraine has been long supporting the use of digital assets even before the war. Last year in November 2021, Bornyakov said: "The big idea is to become one of the top jurisdictions in the world for crypto companies. We believe this is the new economy, this is the future, and we believe this is something that is going to boost our economy.”

With the recent passing of the law, Ukraine’s native crypto exchanges can play crucial role in times of such distress.

Ukraine’s first crypto exchange Kuna can work with the government helping them in converting the crypto donations to fiat. The Ukrainian government recently joined hands with crypto exchange FTX which will be working alongside the National Bank of Ukraine.