Volodymyr Zelenskyy, the president of Ukraine, has signed a law establishing a legal framework for the country to operate a regulated crypto market.
In a Wednesday announcement, Ukraine’s Ministry of Digital Transformation said Zelenskyy signed a bill named “On Virtual Assets,” first adopted by the country’s legislature, the Verkhovna Rada, in February. Crypto exchanges and firms handling digital assets will be required to register with the government to operate legally in Ukraine, and banks will be allowed to open accounts for crypto firms.
The law endows Ukraine’s National Securities and Stock Market Commission with the power to determine the country’s policies on digital assets, issue licenses to businesses dealing with crypto and act as a financial watchdog. The government agency added that Ukraine’s Ministry of Finance was also working towards amending the country’s tax and civil codes to accommodate the legal framework for digital assets.
“The signing of this law by the president is another important step towards bringing the crypto sector out of the shadows and launching a legal market for virtual assets in Ukraine,” said the Ministry of Digital Transformation.
Cryptocurrency has become a major issue in the country's current fight against Russia following the invasion on Feb. 24, with many donating directly to Ukraine for humanitarian causes and funding the military. At that time, the National Bank of Ukraine said that it had limited cash withdrawals at banks, fixed the foreign exchange rate of the country’s hryvnia currency and suspended the issuance of electronic money.
On Monday, Kuna, Ukraine's largest crypto exchange, helped launch a donation platform with FTX and Kuna, staking platform Everstake, and the Ministry of Digital Transformation to allow users to send several cryptocurrencies “to support people in their fight for freedom.” According to the website, users have sent more than $54 million in crypto at the time of publication, roughly 27% of the platform’s $200 million goal.