Ukraine’s President Zelenskyy Signs Legal Framework for Crypto
The law establishes a formal framework for a legal digital asset market which will include a licensing regime and regulatory supervision
Ukrainian flag flying over Kyiv | Source: Shutterstock
key takeaways
- Ukraine has passed its law “on virtual assets,” paving the way for a legal crypto market
- The country’s crypto market will be overseen by the National Securities and Stock Market Commission
Ukraine clarified cryptoassets’ legal status with a new law signed by the country’s president, Volodymyr Zelenskyy, on Wednesday.
The law sets in motion a formal framework for the establishment of a legal market for digital assets, Ukraine’s Ministry of Digital Transformation said in a statement.
Ukraine’s “On Virtual Assets” law comes at a time when crypto donations have continued to flow into the country following Russia’s military invasion on Feb. 24. Approximately $60 to 100 million in donations have been received via cryptocurrencies, according to Ukraine’s deputy minister for digital transformation, Alex Bornyakov.
The newly formed market is to be overseen by the National Securities and Stock Market Commission. The regulator is now tasked with implementing state policy as it relates to digital assets, issuing licenses and supervision, among other responsibilities.
Specifically, the law determines the legal status, classification and ownership of digital assets including market regulators. It will also create conditions for “further formation” of the country’s digital asset market, the ministry said.
Under the new law, a list of virtual asset service providers will be kept to provide registration and financial monitoring measures.
“The signing of this Law by the President is another important step towards bringing the crypto sector out of the shadows and launching a legal market for virtual assets in Ukraine,” the ministry said in its statement.
Effects of the war in Ukraine have been a dominant driver of market moves over the past month.
Hunter Horsley, CEO of crypto asset manager Bitwise, recently told Blockworks that the war also underscores the need for decentralized solutions.
“As it pertains to Web3, I think [the conflict] is absolutely galvanizing entrepreneurs to work on building the decentralized, permissionless systems of the future,” Horsley said earlier this month.
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