Ukraine legalizes Cryptocurrencies

In the midst of war threats, the Ukrainian parliament decided on Thursday to legalize cryptocurrency, making it simpler to use. With 272 votes in favor, the Ukrainian parliament passed the Law of Ukraine on Virtual Assets.

“Ukraine is now among the top-5 countries on cryptocurrency usage. We took another step forward today, a law on virtual assets has been passed by Parliament,” Ukrainian deputy prime minister Mykhailo Fedorov tweeted after it passed.

What is CryptoCurrency?

A cryptocurrency is a digital or virtual currency that is protected by encryption, making counterfeiting and double-spending practically impossible. Many cryptocurrencies are built on blockchain technology, which is a distributed ledger enforced by a distributed network of computers. Cryptocurrencies are highlighted by the fact that they are not issued by any central authority, making them potentially impervious to government intervention or manipulation.

Cryptocurrencies can be given and received anonymously, allowing organizations to generate funds even if financial institutions do not allow or strictly regulate payment transactions.

How did cryptocurrency legalized in Ukraine?

The bill’s approval was Ukraine’s second effort to legalize bitcoin. In October, the Ukrainian parliament took a similar step by introducing a bill calling for the creation of a new independent regulatory body to monitor cryptocurrency exchanges.
President Volodymyr Zelensky sent the bill back to the members, proposing minor modifications and citing a shortage of funds in the budget as a reason for not passing it at the time.

On Thursday, the Verkhovna Rada, Ukraine’s parliament, enacted a bill that included Zelensky’s remarks. He suggested that cryptocurrencies be regulated by Ukraine’s National Securities Commission, National Bank, and Ministry of Digital Transformation.
The bill’s passage, however, does not make Bitcoin legal cash, according to Nasdaq.com, quoting a report from Bitcoin Magazine. The National Securities Commission will now give permits to Bitcoin and cryptocurrency service providers, according to the report.

Cryptocurrency has become an important tool for some Ukrainians in their battle against Russian invasion concerns. Ukraine received more than $500,000 this year, according to a report by Elliptic, a crypto compliance solutions supplier, as it drew closer to war with Russia.

The Ukrainian Cyber Alliance, Myrotvorets Centre, and Come Back Alive are three organizations that have provided assistance to the Ukrainian government during the crisis and are among many who have assisted the army and government through Bitcoin-based crowdfunding.

According to the report, Ukrainian groups have supplied military equipment, medical supplies, and drones purchased with Bitcoin to help reinforce the country’s strength in the wake of an all-out invasion.