Ukraine officially establishes a crypto regulatory framework

It is a known fact that Ukraine has filled many stomachs with the heavy funds raised by the crypto community donations after Russia decided to perform a “special military operation.” President Volodymyr Zelenskyy has signed a regulatory framework for legalizing crypto for operating a regulated crypto market. 

Ukraine’s Ministry of Digital Transformation announced on Wednesday that Zelenskyy had signed a bill titled “On Virtual Assets.” As TheCoinRise reported, it was initially passed by the country’s legislature, the Verkhovna Rada, in February amid its dispute with Russia. To operate lawfully in Ukraine, crypto exchanges and firms managing digital assets will be needed to register with the government, and banks will be able to open accounts for crypto firms.

National Securities and Stock Market Commission will supervise crypto in Ukraine

The law gives the National Securities and Stock Market Commission in Ukraine the authority to create the nation’s digital asset rules, grant licenses to crypto firms, and function as a financial watchdog. Ukraine’s Ministry of Finance is also seeking to alter the country’s tax and civil regulations to meet the legal framework for digital assets, according to the government agency. The Ministry of Digital Transformation stated:

“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.”

Ukraine has legalized the crypto sector — @ZelenskyyUa 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. pic.twitter.com/lqqO1J9r1k

— Мінцифра (@mintsyfra) March 16, 2022

Following the invasion on February 24, cryptocurrency has become a big issue in Ukraine’s present war against Russia, with many people donating directly to the country for humanitarian needs and military finance. The National Bank of Ukraine announced at the time that it had restricted cash withdrawals from banks, set the hryvnia’s foreign exchange rate, and halted the issuance of electronic money.

On Monday, Ukraine’s largest crypto exchange Kuna, collaborated with FTX, Everstake, and the Ministry of Digital Transformation to develop a donation platform that allows users to send multiple cryptocurrencies “to support people in their fight for freedom.”