Crypto Gets Legal Status in Ukraine, President Volodymyr Zelenskyy Signs Bill to Establish Regulatory Framework

The new law will allow the crypto market to operate 'out of the shadows' and provide a legal framework.

By Shomik Sen Bhattacharjee | Updated: 17 March 2022 12:52 IST

Crypto Gets Legal Status in Ukraine, President Volodymyr Zelenskyy Signs Bill to Establish Regulatory Framework

Photo Credit: AFP

krainian President Volodymyr Zelenskyy has legalized crypto in the country

Highlights

The new law doesn't make any crypto a legal tender
Ukraine's finance ministry is working on tax regulations
Ukraine has received millions in crypto donations in the past month

Ukrainian President Volodymyr Zelenskyy has signed a virtual assets bill into law to legalise cryptocurrencies in the country that has been receiving millions in crypto donations for military and humanitarian aid in its fight against the Russian invasion. According to Ukraine's Ministry of Digital Transformation, Zelenskyy signed a law that was passed by Ukraine's legislature, the Verkhovna Rada, in February. Crypto exchanges and companies dealing in digital assets must register with the government to operate legally in Ukraine, and banks are allowed to open accounts for crypto companies.

According to a press release published by the Ministry of Digital Transformation, the law gives the National Securities and Stock Market Commission of Ukraine the authority to set the country's policy on digital assets, issue licenses to companies trading in cryptocurrencies and act as a financial regulator.

The government agency added that Ukraine's Ministry of Finance is also working on amending Ukraine's tax and civil codes to create the legal framework for digital assets. It is also worth noting that the new law does not make crypto legal tender but does provide a regulatory structure for digital assets.

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.
— Alex Bornyakov (@abornyakov) March 16, 2022

"We believe that the crypto industry offers new economic opportunities. We will do our best to bring the bright new future closer as soon as possible," Alex Bornyakov, the deputy minister of digital transformation on IT industry development, said on Twitter referring to the announcement.

Ukraine has legalized the crypto sector — @ZelenskyyUa signed a law. From now on foreign and Ukrainian cryptocurrencies exchanges will operate legally and banks will open accounts for crypto companies. It is an important step towards the development of the VA market in Ukraine. pic.twitter.com/lqqO1J9r1k
— Міністерство цифрової трансформації України (@mintsyfra) March 16, 2022

The law had previously been adopted by Ukraine's parliament on February 17 after Zelenskyy rejected an earlier version approved in September 2021.

Since the start of the war with Russia, the country has relied on crypto as an additional means of attracting donations from around the world, which have been leveraged to buy supplies for the armed forces.

Earlier this week, the Ukrainian government launched a website dedicated to crypto donations. In a style similar to that of popular fundraising platforms, it shows a goal of $200 million (roughly Rs. 1,520 crore), with over $56 million (roughly Rs. 425 crore) raised at the time of writing.

Among the cryptocurrencies accepted are Bitcoin, Ether and Tether (USDT). Ukraine officials announced this week details about its plans to sell NFTs, saying that it will be "like a museum of the Russian-Ukrainian war."

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