Ukraine Legalizes Bitcoin Amid Heightened Tension With Russia

Despite the ongoing tensions brewing along its borders with Russia, lawmakers in Ukraine have passed a law that legalizes digital currencies, a move that has sparked accolades in the global cryptocurrency ecosystem. As reported by News18, the Ukrainian Parliament – Verkhovna Rada – passed the bill with 272 votes to make history as one of the most forward-thinking legislators when it comes to digital assets.

The Bill does not imply that Bitcoin (BTC) or any of the other digital currencies is a legal tender in Ukraine, however, it does imply that the usage of the asset will now be more convenient for citizens. Digital currency exchanges will also be given licenses to operate in the country.

“Ukraine is already in top-5 countries on cryptocurrency usage. Today we made one more step forward: Parliament adopted law on virtual assets! This will legalize crypto exchangers and cryptocurrencies, and Ukrainians could protect their assets from possible abuse or fraud,” said Mykhailo Fedorov, the Deputy Prime Minister of Ukraine and Minister of Digital Transformation of Ukraine.

With the plans to legalize cryptocurrencies ongoing for some time, the passage of the Digital assets Bill comes off as the second attempt by the Parliament to legalize cryptocurrencies. Back in October 2021, the lawmakers almost passed a bill that sought to establish a new independent regulatory body to oversee crypto exchanges. However, President Volodymyr Zelensky asked lawmakers to make some changes to the bill, aside from the lack of budget to fund the proposals.

The bill passed has taken note and implemented the president’s suggestions with Ukraine’s National Securities Commission, National Bank and Ministry of Digital Transformation all tasked with the regulation of the new industry.

New Dawn for Bitcoin and Crypto in Ukraine

With the passage of the crypto Bill in Ukraine, digital assets service providers can now extend their operations to the country, provided they meet the established requirements to secure operating licenses.

The ongoing brawl with Russia along the border has seen a number of Non-Profit Organizations crowdfund cash in Bitcoin to support the government. The Myrotvorets Center, Come Back Alive and The Ukrainian Cyber Alliance are three of the organizations that have been tagged with this move per the News18 report.

While this action may not have influenced the lawmakers, it certainly shows how well Bitcoin and crypto, in general, can be put to good use given the right regulations, while also putting the right framework in place to continually crackdown on offenders.