War Tensions Escalate, Ukraine Legalizes Cryptocurrency-Information Technology

Since the day of the hostilities with Russia, Ukraine has received tens of millions of dollars in cryptocurrency donations.

Ukrainian President Volodymyr Zelensky has approved a bill to legalize the cryptocurrency sector in Ukraine. This decision comes after Ukraine received tens of millions of dollars worth of cryptocurrency donations from foreign individuals and organizations.

This bill was previously approved by the parliament of Ukraine before being presented to the president. This document authorizes banks in Ukraine to open accounts for cryptocurrency companies and assigns the National Bank of Ukraine and the National Securities and Market Commission to oversee the cryptocurrency market.

In addition, the bill also provides that the Ukrainian government will protect cryptocurrencies held by Ukrainian citizens with legal status equivalent to fiat currency hryvnia.

In a post on the social network Telegram, Ukraine’s Minister of Digital Transformation Mykhailo Fedorov said the new law will “bring the crypto sector out of the shadows”.

Fedorov also said that cryptocurrencies are a powerful tool to help the Ukrainian military receive donations in the context of the tense war with Russia. According to Fedorov, the Cryptocurrency Fund of Ukraine has raised more than 54 million USD worth of cryptocurrencies. Some other sources also said that the Ukrainian government has received nearly 100 million USD in cryptocurrency donations.

Cryptocurrencies are playing a significant role in the Russia-Ukraine war. In addition to being a vehicle for donations to the Ukrainian government, both Russians affected by sanctions and Ukrainians whose lives have been disrupted by the war are also looking to this asset class more. The legalization of cryptocurrencies by the Ukrainian government could make the sector more efficient and make it easier for Ukrainians to get help from abroad.