The cryptocurrencies played a vital role in the war Ukraine and today the country took an important step in legal matters. The Ministry of Digital Transformation of that country ad 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 the development of 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 already considered the cryptocurrencies as a key piece in economic development of the country, the invasion of Russia enhanced its importance. From the beginning of the war, the Government mounted a campaign to receive donations in Bitcoin, Ethereum and USDT.
Both Zelensky and Deputy Prime Minister Mykhailo Fedorov sent posts via Twitter and Telegram requesting support from the West. The response was immediate and a few days donations exceeded 59 million dollars.
Ukraine seeks to liberalize its economy with cryptocurrencies
According to Alex Bornyakov, Deputy Minister of Digital Transformation of Ukraine, the collection reached 100 million dollars on March 9. More than 60% was received in the fund operated by Kuna and is used to purchase fuel, food, military and medical equipment.
In an interview with TechCrunchMykhailo Fedorov commented that the Government of Ukraine 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 that opened the door to what was approved today. In September, the Ukrainian Parliament adopted a bill to regulate the transaction of virtual assets, 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 in that country and in the United States warn that Russia should not have access to them. Both US Senator Elizabeth Warren and former Secretary of State Hillary Clinton point out that Putin and company will evade economic sanctions if its use is not regulated as soon as possible.
The Washington-driven doublespeak echoed in some exchanges of cryptocurrencies, but not in all. An example is Binance, which only blocks the transactions of Russian politicians and other personalities that make up the sanctioned list. The company mentions that not all Russians support the war, so it is necessary to separate the politicians from the rest of the people.
It is worth mentioning that Russia’s relationship with crypto has never been a good one. 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 Department of Financial Stability called for reinforcing the existing ban and introducing punishments for individuals and companies for buying or selling goods, services and labor using crypto.