Amid War, President Volodymyr Zelenskyy Signs Law To Officially Operate Crypto Markets In Ukraine

The President of Ukraine, Volodymyr Zelenskyy, signs the regulation on cryptocurrencies in Ukraine. (photo: @ZelenskyyUa)

JAKARTA – The President of Ukraine, Volodymyr Zelenskyy, currently still based in Kyiv, has signed a law establishing the legal framework for the country to operate a regulated crypto market.

In an announcement on Wednesday, March 16, Ukraine's Ministry of Digital Transformation said Zelenskyy signed a law named "On Virtual Assets," which was first adopted by the country's legislature, the Verkhovna Rada, in February.

Cryptocurrency exchanges and companies dealing with digital assets will be required to register with the government to operate legally in Ukraine, and banks will be allowed to open accounts for crypto companies.

The law gives the Ukrainian National Stock and Securities Market Commission the power to determine state policies on digital assets, issue licenses to businesses dealing with cryptocurrencies and act as financial watchdogs.

The government agency added that Ukraine's Ministry of Finance is also working to amend the country's tax and civil code to accommodate the legal framework for digital assets.

"The signing of this law by the president is another important step to bring the crypto sector out of the shadows and launch a legal market for virtual assets in Ukraine," the Ministry of Digital Transformation said.

Cryptocurrencies have become a major issue in the country's current war against Russia following the invasion on February 24, with many donating directly to Ukraine for humanitarian purposes and funding the military.

At the time, the National Bank of Ukraine said that they were limiting cash withdrawals at banks, setting the country's hryvnia exchange rate, and suspending the issuance of electronic money.

Last Monday, Kuna, the largest crypto exchange in Ukraine, helped launch a donation platform with FTX and Kuna, betting platform Everstake, and the Ministry of Digital Transformation to allow users to send multiple cryptocurrencies “to support people in their fight for freedom.”

According to the website, users have sent over 54 million dollars (IDR 770 billion) in crypto at the time of publication, roughly 27% of the platform's target of 200 million US dollars (IDR 2.8 trillion).