Ukraine has been through hard times ever since the initiation of the Russian invasion across the territory. The country has been discovering economic methods to keep them going in retaliation to the war that impacted their stature. Amidst the chaos, President Volodymyr Zelenskyy found the necessity of making an impactful consistency across their economic conditions through cryptocurrency. The country has successfully received $100 million in cryptocurrency, which displays this digital solution to be proficiently beneficial for the country’s economic chaos. Ukraine, realizing the current conditions, took the initiative of legalizing cryptocurrency by passing a new bill. Soon, we shall see cryptocurrency being referred to as a legal asset class throughout Ukraine, giving the digital asset a new face of recognition within the country.
What Does the Law State?
The announcement was made through a statement made by the Ukrainian Ministry of Digital Transformation on the 16th of March, which was quite comprehensive in setting a direction for cryptocurrency and associated platforms. Talking about the new bill and the benefits offered, foreign and Ukrainian crypto exchanges would be able to operate legally across the country for the masses. This step is believed to polish the legal market of virtual assets across Ukraine, which shall be seen quite soon. An open crypto market that would be set up across the country would be provided with a new regulatory framework, which, as mentioned, would be ‘crypto-friendly.’
The bill acts as a legal framework for the crypto industry to develop and exist while intertwining regulatory parties such as the National Bank of Ukraine and the National Commission on Securities and Stock Market. To legitimize the crypto industry further, the bill also states the development of a tax code and different laws for its sustenance.
As stated on the Ministry of Digital Transformation of Ukraine in its Twitter account “Ukraine has legalized the crypto sector — Zelensky signed a law. From now on foreign and Ukrainian cryptocurrencies exchanges will operate legally and banks will open accounts for crypto companies. It is an important step towards the development of the VA market in Ukraine.”
How Will It Benefit The Current Ukrainian Market?
Ukraine has been very friendly towards cryptocurrency, even before its legalization across the country dynamics. With the country accepting cryptocurrency in donations, it was quite evident that Ukraine wanted to put a step closer with the virtual assets. Regardless of it being ‘not legal’ within the country, Ukraine was crowned as the leading country for adopting cryptocurrency. With the new law instated across the country, virtual assets will have a proper operation across the legal gray area, Crypto exchanges and firms will be able to register with the government and operate legally. Banks are now allowed to open accounts for this kind of entity. In addition to this, the country authorities will be able to target crypto crime and money laundering issues relating to virtual assets. Legalizing cryptocurrency has influenced a controlled environment, which keeps the prevailing concept of decentralization alive and prevents major misuse of virtual assets within the country.
A New Direction to Economic Supremacy?
The Ukrainian Parliament passed the “On Virtual Assets” bill on the 17th of February; however, President Zelenskyy recently signed and approved this bill to be set as law across the country. This friendly commitment to making cryptocurrency a proper industry would surely benefit Ukraine in multiple ways. Considering this platform has been working as a lifeline for Ukraine’s war efforts, multiple benefits have been discovered related to the digital assets, which would be put into proper adoption by the Ukrainian authorities in the coming future.