Ukrainian President Volodymyr Zelenskyy has legalized cryptocurrency within the country, signing a new law on virtual assets, after a large increase of bitcoin donations in support the country’s defense against a Russian invasion.
The law establishes the legal status, classification, ownership and regulators of virtual assets, as well as setting registration requirements for crypto services providers, the Ministry of Digital Transformation said in a statement Wednesday.
The market will be controlled by Ukraine’s National Commission on Securities and the Stock Market.
Exchanges will be able to operate, and banks will allow accounts for them, according to the digital ministry.
The regulator will be responsible for “shaping and pursuing a policy in the field of virtual assets; determining the order of circulation of virtual assets; issuing permits to virtual asset service providers; and carrying out supervision and financial monitoring in this area,” according to a Feb. 17 government announcement.
Ukraine has received at least $100 million in crypto donations as humanitarian efforts intensify.
The bill passed through parliament on Feb. 17 after Zelensky rejected an earlier version approved in September 2021.
The Ministry of Finance is working on amendments to the country’s tax and civil codes to fully launch the market for virtual assets, the statement said.