The Government of Ukraine has approved a law that effectively legalizes cryptocurrencies, with one of the most favorable regulations ever approved by a Western country.
In the hours immediately following the outbreak of the conflict, Ukraine’s minister for digital transition appealed to the community of cryptocurrency investors and enthusiasts, quickly obtaining donations of over 10 million euros. In the meantime, donations have increased further and there is already talk of several tens of millions of euros.
The law was passed by Parliament in February, and has now been signed by President Zelensky. The law gives banks carte blanche, which will be able to open current accounts in the name of companies operating in the sector and will also be able to provide services related to cryptocurrencies.
The law also introduces market control and surveillance measures, entrusting these tasks to the central bank of Ukraine and to the authority that oversees the work of listed companies. The Government intends to offer citizens who invest cryptocurrencies the same legal guarantees offered for deposits in fiat currency.
“The cryptocurrency sector will no longer have to operate in the shadows,” said Mykhailo Fedorov, vice president and digital transformation minister of the Ukrainian government.
Since the start of the conflict, the wallets opened by the government of Ukraine have obtained over 50 million euros in cryptocurrencies. Money that will go almost entirely to the country’s war efforts – unlike other collections that have focused on humanitarian interventions and assistance.
After the military invasion of Russia, cryptocurrencies have attracted strong interest from the local population. Kuna, an exchange based in Ukraine, has seen an increase in transactions of more than 200%.