On February 16, Ukraine’s president, Volodymyr Zelenskyy, signed a bill establishing a crypto framework. The bill on “Virtual Assets” passed by Ukraine’s Verkhovna Rada would create a legal foundation for cryptocurrency in the nation.
The National Securities and Stock Market Commission will be in charge of all market laws and oversight.
What implications does the law have for Ukraine’s crypto community?
The new law will bring the crypto market out of the shadows and create a legal framework to function within. Organizations and cryptocurrency exchanges operating in the nation would have to register with the government to operate lawfully.
The law will establish the legal status, categorization, and ownership of virtual assets. The National Bank of Ukraine and the National Commission on Securities and Stock Market will be the market regulators.
It will also keep track of and oversee the list of entities that operate in the crypto industry and their registration and monitoring mechanisms.
The president’s signature on the bill marks a significant step forward in mainstreaming cryptocurrency.
The Ukrainian National Securities and Stock Market Commission has been given the power to decide on the country’s digital asset policy, issue licenses to crypto firms, and function as a financial watchdog.
Cryptocurrency was critical to Ukraine’s stability
Crypto kept the country strong through the difficult times when banks and financial institutions were shut down. Millions of dollars in cryptocurrency donations poured in, helping mitigate the negative consequences of Putin’s decision.
The crypto community never lost upon Ukraine, despite the fact that many nations did not step up to offer their support.
The overall value of tracked crypto contributions is $108 million, with various organizations contributing their support and funds. The cash raised will be used to assist the country in reclaiming what it lost during the conflict.
Various firms, including BAYC, Kraken, and Binance, donated to the country. With the new regulation in place, Ukraine’s first crypto exchange, Kuna, will no longer be confined to assisting the government in spending donations directly with crypto-friendly vendors but will also be able to convert bitcoin to much-needed currency.
Meanwhile, the country has teamed up with FTX, a Bahamas-based exchange, to convert crypto donations to Ukraine’s war effort into fiat for deposit at the National Bank of Ukraine.