According to the Ukraine's Ministry of Digital Transformation, cryptocurrency will become legal tender in the nation under a new law passed this week.
The law was taken on by Ukraine's parliament about a month ago and then signed off by President Volodymyr Zelenskyy this past Wednesday. The reason behind this legislation is due the the millions of dollars worth of digital currency donations Ukraine has received from around the world to aid the nation's war effort against Russia.
According to the bill, it "creates conditions for the launch of a legal market for virtual assets in Ukraine." The law would permit banks in the Ukraine to open up accounts that are intended for cryptocurrency firms and recognize the National Bank of Ukraine and the National Commission on Securities and Stock Market as financial overseers for this sector.
"The Parliament has adopted a law on virtual assets. I think the president is about to sign it into law in a matter of days. So we strive to be as friendly to virtual assets as possible. And we are continuing this effort during wartime as well," Ukraine's vice prime minister and minister of Digital Transformation, Mykhailo Fedorov, informed TechCrunch in a previously held interview.
Fedorov, in a post that was made on Telegram, also stated that the law would "bring the crypto-sector out of the shadows."
Reports from crypto sites such as Cointelegraph and Coindesk reveal that crypto exchanges and firms that deal with digital assets now need to register with the government in order to legally conduct business in the Ukraine. In terms of donations made to the Ukraine, the form of cryptocurrency has been essential when it comes to raising money for the war.
Coindesk reported this past Monday that a donation website known as "Aid for Ukraine" was initiated "to support people in their fight for freedom." The website takes donations in the form of bitcoin (BTC), ether (ETH), tether, polkadot, Solana (SOL), dogecoin, monero, icon, and neo.