In the midst of rising Russian-Ukrainian tensions and global market anxiety about the risk of a larger conflict, Ukraine finally approved the use of cryptocurrencies on Thursday.
Ukraine’s adoption of cryptocurrency comes after the country collected $100 million in crypto contributions to help finance the government’s efforts against Russia financially.
The Ukrainian Ministry of Finance is already working on changes to the country’s tax and civil legislation.
History of the much-awaited Bill
Zelenskyy vetoed the bill in October, citing the high cost of creating new crypto regulating authority.
On February 17, the Verkhovna Rada (Ukrainian parliament) approved the president’s modified cryptocurrency bill, which addressed his concerns.
Distribution of crypto-assets according to the law
Virtual assets are broken down into three main groups by the law. Cryptocurrencies like bitcoin are termed “unsecured” assets, while “secured” virtual assets like profit-making security tokens are not.
The third group of virtual assets is called “financial” virtual assets. Tokenized stocks, stablecoins, and digital currencies from central banks are all in this group.
The significance of the new legislation
The new legislation, signed by the president, would enable international and Ukrainian cryptocurrency exchanges to operate lawfully in Ukraine, marking a significant step forward in the country’s efforts to establish a legal market for virtual assets.
For the first time in Ukraine’s history, the new law will set up a legal framework for an open cryptocurrency market.
The Stock Exchange Commission’s Role
According to a statement from the Ministry of Finance, Ukraine’s stock market commission will be responsible for monitoring cryptocurrency exchanges.
Following a government statement made in February, Ukraine’s National Securities and Stock Market Commission will be entrusted with developing guidelines for virtual assets.
The global acceptance of cryptocurrency is growing
Ukraine and Russia have joined a group of twelve other countries and the European Union where bitcoin and cryptocurrency are legal, which include the United States, Canada, El Salvador, Japan, and many more.