The Law Establishing a Regulatory Framework for Crypto

The National Securities and Stock Exchange Commission will set policies on digital assets, license crypto firms, and serve as a financial watchdog. Ukraine’s president, Volodymyr Zelenskyy, currently based in Kyiv, has signed legislation establishing a legal framework for the country to operate a regulated cryptocurrency market.

According to a statement issued by Ukraine’s Ministry of Digital Transformation on Wednesday, Zelensky signed a bill titled “On Virtual Assets,” first passed by the country’s legislature, the Verkhovna Rada, in February. The law empowers Ukraine’s National Securities and Stock Market Commission to determine the country’s digital asset policies; moreover, it issues licenses to businesses dealing with cryptocurrency; finally, it acts as a financial watchdog. According to the government agency, Ukraine’s Ministry of Finance is also working; it will amend the country’s tax and civil codes to accommodate the legal framework for digital assets.

The president’s signing of this law is another important step toward bringing the crypto sector out of the shadows and establishing a legal market for virtual assets in Ukraine.

Following the invasion on February 24, cryptocurrency has become a significant issue in the country’s current fight against Russia; many are donating directly to Ukraine for humanitarian causes and military funding. The National Bank of Ukraine announced that it had restricted cash withdrawals from banks; moreover, it fixed the foreign exchange rate of the country’s hryvnia currency and suspended the issuance of electronic money.

On Monday, Kuna, Ukraine’s largest crypto exchange, collaborated with FTX and Kuna, staking platform Everstake. The Ministry of Digital Transformation to launch a donation platform; it will allow users to send several cryptocurrencies to support people in their fight for freedom. At the time of publication, users had sent more than $54 million in cryptocurrency; the sum accounts for roughly 27% of the platform’s $200 million goals.