President of Ukraine Volodymyr Zelenskyy activated the bill “On Virtual Assets,” which parliament approved in February.
Cryptocurrencies became an official legal tender in Ukraine after President Volodymyr Zelenskyy signed the legislation.
Ukraine’s Ministry of Digital Transformation highlighted that Zelenskyy signed legislation named “On Virtual Assets.” The Ukrainian parliament had previously approved the proposal in February.
The regulations set up a legal framework for the nation to carry out financial activities in a regulated crypto market. This regard decides the legal status, classification, ownership, and regulatory status of crypto assets and sets up registration requirements for cryptocurrency service entities.
According to the official statement, the digital asset market will now be a regulated environment, tracked by the National Securities and Stock Market Commission of Ukraine. The entity must follow a set of rules focused on virtual assets, deciding the fluctuation of circulation of virtual assets, creating the proper permits to virtual asset service providers, and carrying out activities linked to the supervision and financial monitoring in this sector.
In February, the country’s Deputy Prime Minister Mykhailo Fedorov, highlighted that this regulation would give crypto exchanges and cryptocurrencies legal tender status. Ukrainians will be able to save their funds from possible abuse or fraud.
Cryptocurrencies are Growing in Ukraine Amid Conflict with Russia
The approval arrived after the bill entered the Ukrainian Parliament last month. The regulation received its support on February 17, with 272 votes in favor after Zelensky showed a rejective stance on an earlier version agreed in September 2021.
The government said in the statement that Ukraine’s Ministry of Finance is making an effort to amend the country’s civil and tax codes to establish the legal framework for crypto assets.
Ukraine has been approving the use of digital currencies at a fast pace ever since Russia announced the special military operation to attack the nation. Cryptocurrencies have become a significant source of funding amid the armed conflict, with several million dollars pouring into the country in donations for humanitarian causes and financing of the armed forces.
Last week, the country’s deputy minister for digital transformation, Alex Bornyakov, highlighted that the nation had received almost $100 million in donations of crypto assets. The funds helped buy military equipment and finance media activities.
Ukraine’s cryptocurrency exchange Kuna contributed to creating a donation platform with FTX, Everstake, and the Ministry of Digital Transformation. This platform intends to allow users to send cryptocurrency to support people fighting for freedom.
According to the website, users have sent just over $54 million worth of digital coins at press time, about 27% of the platform’s $200 million goals.
By:Jenson Nuñez
