The Ukrainian government enacted a law a few days before the Russian invasion to give cryptocurrencies like Bitcoin and Ethereum legal status. A significant majority of MPs voted in favour of the bill.
The law’s language mainly clarifies the legal position of digital assets in Ukraine. According to the administration, the bill will make it easier for cryptocurrency enterprises to set up shop on Ukrainian land. The country seeks to take advantage of the rise in the digital asset market by establishing a clear and transparent regulatory framework.
The legislation was just signed by Ukraine’s President, Volodymyr Zelensky, on Wednesday, March 16, 2022. develop a legal market for virtual assets in Ukraine,” according to a news statement from Ukraine’s Ministry of Digital Transformation.
“The Parliament has adopted a law on virtual assets. I think the president is about to sign it into law in a matter of days. So we strive to be as friendly to virtual assets as possible. And we are continuing this effort during war time as well,” Ukraine’s vice prime minister and minister of Digital Transformation Mykhailo Fedorov told TechCrunch in an interview earlier this week.
To function legally, bitcoin exchanges and companies that use digital assets must register with the government under this regulatory framework. Above all, the law requires banks to agree to open accounts for crypto-asset enterprises. Banking institutions frequently refuse or unwillingness to work with firms specialising in the field.
“The idea is to become one of the world’s leading jurisdictions for cryptocurrency businesses. We believe this is the new economy, this is the future; and we believe this is something that will boost our economy,” said Alex Bornyakov, Ukrainian Deputy Minister of Digital Transformation.
Finally, the law specifies the authorities responsible for regulating the cryptocurrency market and calls for “financial control measures to be implemented.” This legal position intends to both stimulate the sector’s evolution and monitor its operators to prevent any abuses.
As a result, the effort intends to meet the growing demand for digital currencies. According to multiple analyses conducted by Chainalysis, Ukraine is the fourth most cryptocurrency-abundant country. Pakistan, India, and Vietnam are the top three countries in Eastern Europe.