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• The law determines the legal status, classification, and ownership of virtual assets
• Banks will be allowed to open accounts for crypto firms
Ukraine’s President Volodymyr Zelenskyy signed a law that will allow foreign and Ukrainian cryptocurrency exchanges to operate legally, according to the country’s Ministry of Digital Transformation.
The “virtual assets” law determines the legal status, classification, and ownership of virtual assets. It also introduces financial monitoring measures for virtual assets.
Tech Crunch reported that crypto exchanges and firms handling digital assets will have to register with the government to operate legally in Ukraine, and banks will be allowed to open accounts for crypto firms.
Also read: Ukraine to accept dogecoin for donations as Russian invasion continues
Ukraine’s National Securities and Stock Market Commission will regulate the market. It will issue licenses to crypto businesses and implement state policy in the industry.
The cryptocurrency law was passed in Ukraine’s parliament in September but was vetoed by President Zelenskyy, who said the country couldn’t afford to stand up a new regulatory body for managing cryptocurrency.
Ukraine began accepting donations toward its military defense against Russia via digital currencies like bitcoin and ether. CNBC reported that the country has since expanded the number of cryptocurrencies that it accepts, for donations and has raised over $63 million till now.
Also read: Bitcoin rallies as Eastern Europe war rattles traditional financial systems
Inputs from CNBC and TechCrunch
Picture Credits: CNBC