Ukraine Government Legalizes Cryptocurrencies Amid War

The Ukrainian president Volodymyr Zelenskyy recently signed a new bill into law that makes crypto activities legal in the country. However, the country did not make the asset class a legal tender.

According to a statement from the government’s official website, crypto assets will be legal under the supervision of Ukraine’s National Securities and Stock Market Commission of Ukraine (NSSMC).

NSSMC will supervise and set up regulations for digital assets as well as issue licenses to crypto exchanges.

“The new law is an additional opportunity for business development in our country. Foreign and Ukrainian crypto companies will be able to operate legally, while Ukrainians will have convenient and secure access to the global market for virtual assets,” Deputy Prime Minister-Minister of Digital Transformation Mykhailo Fedorov said.

The government also said it is working to amend its tax law to accommodate crypto assets. The move comes at a time when crypto has been serving as a lifeline to Ukraine in their ongoing conflict with Russia.

Since Russia invaded Ukraine, Ukrainians have largely depended on crypto as their financial tool in order to keep their money accessible. According to recent data by Bankless Times, Ukrainian national currency, hryvnia trading paired with Bitcoin has seen a 258% surge in volume.

Crypto Comes to Ukraine’s Rescue Amid Trying Times

Recall that the government demanded crypto donations from individuals to support its military in its ongoing war against Russia.

The request has so far seen a massive turn out from individuals, crypto exchanges as well as crypto billionaires. According to the most recent update from blockchain analytics firm, Elliptic, Ukraine has now raised over $63.8 million via more than 120,000 crypto asset donations.

Earlier this month, the government announced it had canceled its planned crypto airdrop to instead launch a non-fungible token (NFT) collection to raise funds for its military.

Ukraine also recently partnered with FTX exchange and Everstake to launch a crypto fundraising site for the benefit of its military and humanitarian needs. The site currently has a total balance of $54.2 million at the time of writing.

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