Ukrainian President Volodymyr Zelenskyy has signed a new bill into law that authorised both foreign and Ukrainian cryptocurrency exchanges in the country.
Ukraine’s Ministry of Digital Transformation tweeted on Wednesday that banks in Ukraine will begin to open accounts for crypto companies.
Ukraine has legalized the crypto sector — @ZelenskyyUa signed a law. From now on foreign and Ukrainian cryptocurrencies exchanges will operate legally and banks will open accounts for crypto companies. It is an important step towards the development of the VA market in Ukraine. pic.twitter.com/lqqO1J9r1k— Міністерство цифрової трансформації України (@mintsyfra) March 16, 2022
The world has sent an estimated $100 million in crypto donations to Ukraine since Russia’s invasion, including the Ukrainian military, aid groups, hacktivists and everyday citizens.
Ukraine's Ministry of Digital Transformation in its announcement of the law’s signing said that the signing is expected to bring the crypto sector out of the shadows.
“The signing of this Law by the President is another important step towards bringing the crypto sector out of the shadows and launching a legal market for virtual assets in Ukraine."
The new law sets forth a legal framework for Ukraine’s National Securities and Stock Market Commission to determine the country’s policies on digital assets, issue licenses to businesses dealing with crypto and act as a financial watchdog.
The government agency added that Ukraine’s Ministry of Finance was also working towards amending the country’s tax and civil codes to accommodate the legal framework for digital assets.
Legalising Bitcoin as legal tender signifies that businesses must accept Bitcoin as a payment method, alongside cash – such as the Nigeria Naira, etc.
Bitcoin is a decentralized digital currency created in January 2009 through a process called "mining", has seen large fluctuations in value over the years.
In April, it had reached its lifetime high value of around $65,000 (around N26,966,550.00 at the current exchange rate) but lost the gains in a market crash the next month. Since then it has recovered but not enough to reach the peak yet.