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Ukrainian President signs a bill into law, legalizing cryptocurrency in the country

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Ukraine legalises crypto

Ukrainian President Volodymyr Zelenskyy has signed a measure into law that essentially legalises the country’s cryptocurrency sector. The decision comes as Ukraine has received tens of millions of dollars in bitcoin donations from people and organisations wishing to aid the country’s military effort against Russia.

Ukraine’s assembly, last month, passed Zelenskyy’s legislation. It also “established circumstances for the formation of a legal market in Ukraine for virtual assets.” Moreover, it authorises Ukrainian banks to open accounts for cryptocurrency firms. In addition, it appoints Ukraine’s National Bank and the National Commission for Securities and Stock Market as the sector’s financial regulators.

According to CoinTelegraph, this implies that crypto exchanges and organisations that deal with other virtual assets would have to register with the government. The state claims that it would safeguard citizens’ crypto holdings with the same legal authority that protects its fiat currency, the hryvnia.

Mykhailo Fedorov, Ukraine’s Minister of Digital Transformation, declared in a Telegram message that the measure will “bring the crypto sector out of the shadows.” He writes, “With the start of the war, cryptocurrencies became a potent weapon for drawing more donations to help Ukraine’s Armed Forces.”

The role of Cryptocurrency in the conflict between Russia and Ukraine is considerable. In addition to being a major source for donations to Ukraine, it has been viewed as a possible lifeline for Russians affected by financial sanctions. Swapping virtual assets for fiat to complete purchases remains common and complex, but legal recognition of the crypto industry could help alleviate some of these issues.

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