Ukraine Makes Crypto Legal Amid Mass Donations

Ukraine took the first step to make cryptocurrencies and other virtual assets legal in the country on Wednesday.

Ukraine’s President Volodymyr Zelensky inked the Law of Ukraine On Virtual Assets, which “creates conditions for the launch of a legal market for virtual assets in Ukraine.” Earlier this year, the law was adopted by the Verkhovna Rada of Ukraine.

According to a press release on the matter, “the signing of this Law by the President is another important step towards bringing the cryptocurrencies sector out of the shadows and launching a legal market for virtual assets in Ukraine.”

While the role of cryptocurrencies during internal and international conflicts has yet to be fully explored, Ukraine’s decision comes after the country has received millions in crypto donations following Russia's attack. According to CNBC, the country has raised over $63 million in cryptocurrencies, though some estimate that number could be as high as $100 million, with more donations continuing to pour in.

In Ukraine, the new law puts cryptocurrencies under the regulation of the National Commission on Securities and Stock Market and the National Bank of Ukraine. It also “determines the legal status, classification, and virtual assets ownership rights.”

The law will help facilitate the conditions to create “the legal field in the market of virtual assets.” There is also a list of providers recognized by Ukraine and the law makes clear the “conditions of their registration.”

Included in the law are conditions “for the implementation of financial monitoring measures in the sector of virtual assets.” The new law also allows for banks in Ukraine to open accounts for crypto companies. Cryptocurrencies will also receive the same protection with the same legal force as Ukraine’s national currency, the hryvnia.

While the crypto industry has helped Ukraine, it is also benefiting many Russian citizens as the ruble becomes near worthless. Many crypto providers have refused to leave Russia or close Russian accounts unless legally mandated to do so.