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

article-image

Ukrainian flag flying over Kyiv | Source: Shutterstock

share

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.


Start your day with top crypto insights from David Canellis and Katherine Ross. Subscribe to the Empire newsletter.

The Lightspeed newsletter is all things Solana, in your inbox, every day. Subscribe to daily Solana news from Jack Kubinec and Jeff Albus.

Tags

Upcoming Events

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

Screenshot 2024-05-23 091855.png

Research

Bitcoin L2s aim to boost scalability while preserving decentralization and security, unlocking a better user experience, and new avenues for Bitcoin-powered innovations. However, no existing Bitcoin L2 leverages the full security of Bitcoin.

article-image

The payments firm is exploring PYUSD’s payments use cases

article-image

Planned funds would not stake their holdings, which some say will hurt the ETFs’ appeal for certain investors

article-image

Solana validators voted in favor of a proposal that would send 100% of priority fees to validators

article-image

In November, an iteration of the survey found that 34% of respondents were paying attention to crypto, but that figure has since jumped to 41%

article-image

The sentencing of former FTX exec Ryan Salame is the first among those who pleaded guilty to crimes related to the exchange’s collapse

article-image

BlackRock’s iShares Bitcoin Trust is on the cusp of passing Grayscale’s GBTC in assets under management