Ukraine Cryptocurrency Framework Signed Off

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  • Ukraine has signed a cryptocurrency framework into law
  • The Ministry of Digital Transformation announced the new bill yesterday
  • The country will now regulate crypto activity in the country and allow it to bloom

Even while his country’s very sovereignty is being threatened, Ukraine’s president Volodymyr Zelenskyy has signed a cryptocurrency framework into law which will allow the country to operate a fully regulated crypto market. Even before the outbreak of war, which has seen more than $100 million in cryptocurrency donations flood in, cryptocurrency was on the rise in the country, and the implementation of this new framework will make it easier for such donations to go where they are needed, among other obvious benefits.

Ukraine Crypto Boom Pre-dates War

Cryptocurrency use in Ukraine has rocketed in recent years, with the country found to be the fastest adopter across the world in 2020. This prompted the government into action to get a grasp on the rapidly growing sector.

It might have been thought that Russia’s invasion would kick such considerations off the table, but with over $100 million in donations through cryptocurrency flooding into the country it is actually more important than ever that the country solidifies the ways in which digital assets can be turned into hard currency and used where it is needed.

Crypto Use to be Naturalized

The new bill, On Virtual Assets, was signed by Zelenskyy on Wednesday and announced by the country’s Ministry of Digital Transformation. The new bill affords Ukraine’s National Securities and Stock Market Commission with the power to issue licenses to businesses dealing with crypto and act as a financial watchdog, with crypto exchanges and firms handling digital assets required to register with the government, while banks will be allowed to open accounts for crypto firms.

The Ministry of Digital Transformation added that Ukraine’s Ministry of Finance is also working towards amending the country’s tax and civil codes to accommodate the legal framework for digital asset trading and usage.