Ukraine’s president has officially signed the virtual asset bill to legalize cryptocurrencies in the country for income, exchange, and business, as the bill was approved by parliament last month.
Україна легалізувала криптосектор — @ZelenskyyUa профільний Закон.
Тепер в Україні легально працюватимуть іноземні та українські криптобіржі а банки відкриватимуть рахунки для криптокомпаній. Це ще один важливий крок до розвитку ринку віртуальних активів в Україні. pic.twitter.com/0G5BedCrWf
— Міністерство цифрової трансформації України (@mintsyfra) March 16, 2022
The development has come amid millions of dollars in crypto donations received by Ukraine to fund and supports its war efforts against Russia’s invasion.
According to a statement from the Ministry of Digital Transformation of Ukraine, the crypto sector will be regulated by the National Securities and Stock Market Commission, alongside the National Bank of Ukraine.
The National Bank of Ukraine will supervise the circulation of digital assets secured with other currencies while the National Securities ans Stock Market Commision will be the watchdog for the rest.
The commission will also issue permits to crypto service providers, maintain a register of these entities, and oversee their activities. It is tasked with detecting violations and imposing financial sanctions. The new legislation will guarantee cryptocurrency owners judicial protection of other rights.
The law “On Virtual Assets” will allow crypto platforms or exchanges to operate in the country which has been using digital assets to finance its defense efforts and help its civilian population in the face of Russia’s military assault.
“Ukraine has legalized the crypto sector,” the Ministry of Digital Transformation tweeted on Wednesday. “From now on, foreign and Ukrainian cryptocurrency exchanges will operate legally and banks will open accounts for crypto companies,” added the department.
The law “On Virtual Assets” of Ukraine, which is a leader in terms of crypto adoption in Eastern Europe, will enter into force after Ukrainian Finance Ministry update the country’s Tax Code. The changes are necessary to regulate the taxation of crypto-related incomes and profits.
Ukraine is already one of the top 5 countries in the world for cryptocurrency usage, making the law’s approval somewhat overdue. Ukraine has received at least $100 million in crypto donations over the past three weeks from people who want to support its defense and help fund humanitarian efforts.