In a tweet that went live on Feb 17, 2022, Ukraine’s Vice Prime Minister Mykhailo Fedorovon said that the country’s Parliament had passed a bill on virtual assets that will legalize cryptocurrencies. Fedorovon further stated that by making this move, Ukrainians’ assets would be protected from any exploitation or fraud.
While several top officials from central banks throughout the world, including IMF Managing Director Kristalina Georgieva, raised worries about the penetration of unbacked virtual currencies, the legalization of cryptocurrencies occurred amid escalating tensions with Russia.
Ukraine turns to Bitcoin amid tension with Russia
Bitcoin contributions have skyrocketed to Ukrainian volunteer and hacker organizations that support the Ukrainian government. According to a study published by blockchain researcher Elliptic, the statement is as worries of a Russian strike mount.
According to the article, donors are reportedly funding such NGOs via Bitcoin, avoiding banks and financial institutions that may intercept funds.
What does Ukraine’s crypto bill mean for its investors
The bill guarantees people’s rights to possess and use cryptocurrencies and outlines the rights and responsibilities of all crypto market players. In addition, they will also set the legal basis for merging crypto assets into Ukraine’s financial and regulatory institutions.
The identical Virtual Assets Bill had already been passed by the Ukrainian Parliament in October but was rejected by President Volodymyr Zelensky. Since then, the bill has been revised to ensure that it has the legal procedures required for execution and that it complies with constitutional standards.
According to Ukraine’s Minister of Digital Development, Mikhail Fedorov, the new bill would allow Ukraine to establish a legal market for virtual assets. According to the bill, the National Securities Commission of Ukraine will be the primary regulator for virtual assets and any future virtual asset market.
The Ukrainian government’s swift and prompt decision shows how educated governments are vouching for crypto. This initiative will pave the path for other countries to take the right approach and support crypto. It’s high time that nations and governments stop outright ban on crypto. It will be the beginning of an integrated world where payments will be swift and hassle-free.