President of Ukraine Volodymyr Zelenskyy has signed a bill legalizing the use of cryptocurrencies in the country. This decision is made after the nation received several million dollars in cryptocurrency as donations after Russia’s military invasion of its territory.
The bill that Zelenskyy signed was approved by the Ukrainian parliament last month and creates “the conditions for the launch of a legal market for virtual assets in Ukraine.” It also allows the country’s banks to open accounts for crypto companies and appoints the National Bank of Ukraine and the National Securities and Stock Market Commission as financial watchdogs for the sector.
This means that cryptocurrency exchanges and companies that handle this type of virtual assets will have to register with the local government. The executive is also committed to protecting citizens’ cryptocurrencies with the same legal force as its official currency, the hryvnia.
“With the beginning of the war, cryptocurrencies became a powerful tool to attract additional funds to support the Armed Forces of Ukraine,” said Mykhailo Fedorov, Deputy Prime Minister and Minister of Digital Transformation of Ukraine.
“In more than three weeks of war, Ukraine’s crypto fund has raised more than $54 million in cryptocurrency,” he added.
While the country already viewed cryptocurrencies as an important player in economic development, Russia’s attack further highlighted its role in this arena. Furthermore, since the beginning of the war, the local authorities launched a campaign to receive donations in different virtual currencies such as Ethereum, Bitcoin and USDT.