President of Ukraine Volodymyr Zelenskysigned the law “On Virtual Assets”, which aims to regulate crypto markets in Ukraine. The law’s approval includes clauses such as relying more and more on crypto donations to fund his country’s defense and deal with humanitarian issues during an ongoing Russian invasion.
The President of Ukraine has officially approved a bill that sets the rules for cryptocurrency transactions. The law “On Virtual Assets” will allow crypto platforms to use digital assets to fund defense actions and assist civilians in the face of Russia’s military attacks.
Ministry of Digital Transformation on WednesdayUkraine legalized the crypto industry.” “From now on, foreign and Ukrainian cryptocurrency exchanges will operate legally and banks will open accounts for crypto companies,” the department responsible for raising crypto funds added.
The law divides virtual assets into three main categories. Cryptocurrencies such as Bitcoin stand out as “unsafe” but profitable assets, “safe” but profitable crypto assets as the second category and crypto assets such as stocks, stablecoins and CBDCs as the third category “financial virtual assets”. .
The draft was initially approved by the Verkhovna Rada in September, but Zelenski backed the bill the following month, proposing changes to regulatory bodies. The Ukrainian parliament passed the law in mid-February after considering the proposals. Zelenski had to sign within 10 days, but then clashes and occupation began.
Before the revised final version was presented, the virtual assets law envisioned the establishment of a special crypto regulatory body, but the Ukrainian president objected to the idea, warning that it would cost additional budgetary spending. Lawmakers agreed and freed the digital ministry from its oversight responsibilities.
The National Securities and Exchange Commission (NSSMC) and the National Bank of Ukraine (NBU) will be the main crypto regulators under the amended rules. The new legislation will guarantee cryptocurrency holders judicial protection of other rights.