Ukraine, which has been at war with Russia, has decided to establish a legal framework through which cryptocurrencies can be legally regulated in the country. The country’s parliament passed legislation to legalize cryptocurrencies in February, and its President Volodymyr Zelensky signed a law on Wednesday.
What is Ukraine’s new law on cryptocurrencies?
According to CoinDesk, the new Ukrainian law on cryptocurrencies sets the legal status, classification, ownership and regulators of virtual assets, in addition to establishing registration requirements for cryptocurrency service providers.
“From now on, foreign and Ukrainian cryptocurrency exchanges will be legally operated and banks will open accounts for cryptocurrency companies. This is an important step towards the development of the virtual assets market in Ukraine,” Ukraine’s Ministry of Digital said in a tweet.
How will cryptocurrencies be regulated in Ukraine?
The cryptocurrency market in Ukraine will be regulated by its National Securities and Stock Market Commission, which is similar to India’s SEBI.
Under the new law, the Ukrainian securities regulator will also have powers to set policies on digital assets, issue licenses to cryptocurrency-related businesses and act as financial watchdogs.
Why Ukraine made cryptocurrency legal?
Ukrainians have been one of the most active retail users of cryptocurrencies, and legalization of these digital assets has been discussed in the country before, but the new and important reason behind this is believed to be Russia’s attack on Ukraine. Is. In the wake of the war, Ukraine has reportedly received more than $100 million in donations in the form of cryptocurrencies since the conflict began last month.
The Indian Express quoted a report in Techcrunch as saying that with the new law, Ukraine’s first crypto exchange, Kuna, will no longer be limited to helping the country spend donations directly with crypto-friendly suppliers, but rather crypto It will also help in converting the much needed fiat.
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It further added that the country has also partnered with Bahamas-based exchange FTX to deposit crypto contributions to Ukraine’s war effort into the National Bank of Ukraine.
Incidentally, an old law legalizing cryptocurrencies was also passed by the Ukrainian parliament in September, but was vetoed by Zelensky saying the country could not operate a new regulatory body.
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