the cryptocurrencies played a vital role in the war Ukraine and today, the country has reached an important legal milestone. The Ministry of Digital Transformation of this country a d the legalization of the sector, so now exchanges of foreign and Ukrainian cryptocurrencies are allowed.
The State Secretariat assured that Ukraine is making progress in developing the market for virtual assets. The new law, signed by President Volodymyr Zelensky, will allow the opening of accounts in banking institutions for cryptocurrency companies.
Although Ukraine has already considered the cryptocurrencies as a key element of economic development of the country, the invasion of Russia increased its importance. From the beginning of the war, the government organized a campaign to receive donations in Bitcoin, Ethereum and USDT.
Zelensky and Deputy Prime Minister Mykhailo Fedorov sent posts via Twitter and Telegram asking for support from the West. The response was immediate and within days donations topped $59 million.
Ukraine seeks to liberalize its economy with cryptocurrencies
According to Alex Bornyakov, Deputy Minister of Digital Transformation of Ukraine, the collection hit $100 million March 9. More than 60% has been received in the fund managed by Kuna and is used to buy fuel, food, military and medical equipment.
In an interview with Tech CrunchMykhailo Fedorov commented that the Ukrainian government seeks to liberalize its economy. “We are working on the military, technological and economic front. Our government has worked hard to remove obstacles and bottlenecks in our economy,” he said.
The Deputy Prime Minister refers to an initiative signed in 2021 which opened the door to what was approved today. In September, Ukraine’s parliament passed a bill to regulate virtual asset transactions, as well as a fraud protection strategy for cryptocurrency owners.
Everyone can use them except Russia
At the same time that Ukraine benefits from the use of these assets, politicians there and in the United States warn that Russia should not have access to them. US Senator Elizabeth Warren and former Secretary of State Hillary Clinton point out that Putin and his company escape economic sanctions if its use is not regulated as soon as possible.
the Doublespeak led by Washington echoes in some Trades of crypto-currencies, but not in all. An example is Binance, which only blocks transactions from Russian politicians and other figures who make up the sanctioned list. The company mentions that not all Russians support the war, so it is necessary to separate politicians from the rest of the people.
It should be mentioned that Russia’s relationship with crypto has never been good. Unlike Ukraine, the Bank of Russia asked to veto its use arguing that they are volatile and used in illegal activities.
In a report published in January this year, the Bank of Russia mentions that the country needs new laws to prevent activities related to cryptocurrencies. The Financial Stability Department has called for strengthening the existing ban and introducing penalties for individuals and businesses for buying or selling goods, services and labor using crypto .
I am Bhumi Shah, a highly skilled digital marketer with over 11 years of experience in digital marketing and content writing in the tech industry.