A month after Ukraine’s parliament passed a bill to legalize cryptocurrency, preparing a framework for the regulation and management of cryptocurrencies like Bitcoin and Ethereum, President Volodymyr Zelensky has signed into law that bill. Named “On Virtual Assets,” this bill establishes a legal framework for the country to operate a regulated crypto market.
Digital asset-focused outlets, 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 law also reportedly empowers Ukraine’s National Securities and Stock Market Commission with the ability to determine the country’s policies on digital assets, issue licenses to businesses dealing with crypto, and act as a financial watchdog.
The types of regulations that were just passed into law have taken on new urgency with Ukraine receiving at least $100 million in crypto donations in the weeks since Russia invaded the country, prompting an estimated three million people to flee the country of 42 million.
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. In the meantime, the country has also partnered with the Bahamas-based exchange giant FTX to convert crypto contributions to Ukraine’s war effort into fiat for deposit at the National Bank of Ukraine.
More specifically, as reported by Coindesk, FTX and Kuna and a staking platform called Everstake have partnered with Ukrainian government officials to launch a donation website for users that is called called Aid for Ukraine and accepts donations in Bitcoin, Ether, Tether, Polkadot, Solana, Dogecoin, Monero, Icon and Neo “to support people in their fight for freedom.”