Ukraine’s President Signs Law To Legalize Crypto After Over $100 Million In Digital Currency Donations

President of Ukraine, Volodymyr Zelensky, has signed into law a bill to legalize cryptocurrency and give a legal framework for the country to operate a regulated cryptocurrency market.

The law, which was named “On Virtual Assets”, empowers Ukraine’s National Securities and Stock Market Commission with the ability to determine the country’s policies on digital assets, issue licences to businesses dealing with crypto, and act as a financial watchdog.

According to TechCrunch, crypto exchanges and firms handling digital assets will now be required to register with the government to operate legally in Ukraine, and banks will be allowed to open accounts for crypto firms.

The Deputy Minister of the Ukrainian Ministry of Digital Transformation for IT Development, Alex Bornyakov announced the development on his Twitter page.

“The law ‘on virtual assets’ was signed today! Now crypto is legalized in Ukraine. Thank you, President @Zelenskyy for the support. We believe that crypto industry offers new economic opportunities. We will do our best to bring the bright new future closer as soon as possible,” he tweeted.

The Ukrainian parliament had previously tried to pass a law legalizing cryptocurrency but it was vetoed by President Zelensky on the grounds that the country could not afford to establish a new regulatory body to manage cryptocurrency in the country.

The need to pass the bill gained urgency again because Ukraine has received at least $100 million in crypto donations since Russia began its invasion of the country.

With the new law in place, Ukraine’s first crypto exchange, Kuna, will no longer be limited to helping the country spend the donations directly with crypto-friendly suppliers but to convert crypto to much-needed fiat.

For now, Ukraine has also partnered with the Bahamas-based exchange giant FTX to convert crypto contributions to fiat for deposit at the National Bank of Ukraine amidst Ukraine’s war effort.