Ukraine Passes Bill To Legitimize Bitcoin, Cryptocurrencies As War Clouds Loom With Russia

As war clouds loom between Ukraine and Russia, Ukraine passes a bill to legitimize Bitcoin, Ethereum, and other cryptocurrencies. In addition, Ukraine had, in October 2021, floated a bill to create an independent body to regulate crypto exchanges.

As the world anxiously views the tense drama between Ukraine and Russia, the Ukrainian parliament approved a bill that will legalize cryptocurrencies on Thursday. The bill on virtual assets was passed by 272 votes.

Crypto
Crypto

Ukrainian deputy prime minister Mykhailo Fedorov tweeted, following the passage of the cryptocurrency bill, “Ukraine is already in the top-5 countries on cryptocurrency usage. Today we made one more step forward: Parliament adopted a virtual-assets law! It will legalize crypto exchanges and cryptocurrencies, and Ukrainians could protect their assets from possible abuse or fraud.”

Second Attempt to Legitimize Bitcoin

It is the second attempt by the Ukraine parliament to pass the Cryptocurrency bill. Earlier in October 2021, the parliament had passed a bill that would have created an independent body that would oversee the functioning of the cryptocurrency exchanges. However, the bill was sent back by President Volodymyr Zelensky, who cited a lack of funds for not approving the bill.

The latest bill, which the Ukrainian Parliament passed, also known as Verkhovna Rada, included President Volodymyr Zelensky’s suggestion. Volodymyr Zelensky suggested that Ukraine’s National Securities Commission, its National Bank, and the Ministry of Digital Transformation will regulate cryptocurrencies.

National Securities Commission will now issue permits to cryptocurrency service providers.

However, the bill’s passage does not mean that BTC has become a legal tender as per a report by nasdaq.com. The report further stated that the National Securities Commission will now issue permits to Bitcoin and cryptocurrency service providers and undertake supervision and financial monitoring of the market.

Cryptocurrency has become an essential tool for Ukrainians amid fears of a Russian invasion. Cryptocurrency is used by NGOs and groups such as Ukrainian Cyber Alliance, Myrotvorets Centre, and Come Back Alive to help the Ukrainian Government and Army by crowdfunding sponsored by Bitcoins. In addition, purchases have been made for military equipment, drones, and medical supplies using Bitcoin, the report added.