Volodymyr Zelenskyy – the president of Ukraine – has legalized cryptocurrency use in his native country. The move stems after Ukraine received countless crypto donations from individuals around the world following Russia’s invasion. At the time of writing, Ukraine has received more than $50 million in digital currency donations.
Ukraine Opens Its Heart to Crypto
The bill was signed last month by Zelenskyy himself and was then approved by the Ukrainian parliament. The bill sets up an established digital currency market in the country in which Ukrainian banks can “open accounts for crypto firms,” according to the document’s verbiage.
In addition, the National Bank of Ukraine and the National Commission on Securities and Stock Market will serve as watchdogs for the industry, ensuring that all companies in Ukraine delving in both blockchain and crypto obey set laws and do what they must to keep investors protected. This will require all crypto firms to register with the Ukrainian government.
Lastly, all crypto funds will be insured and protected as though they were fiat assets. Mykhailo Fedorov – the vice prime minister and minister of digital transformation of Ukraine – announced on Twitter that he was going to bring the “crypto sector out of the shadows.” He commented:
With the beginning of the war, cryptocurrencies became a powerful tool for attracting additional funding to support the armed forces of Ukraine. In more than three weeks of war, the crypto fund of Ukraine has raised more than $54 million in cryptocurrencies.
Cryptocurrency has become a huge tool in the playing field between Ukraine and Russia. The world watched in horror several weeks ago as Russia invaded its neighbor despite the imposing of several sanctions from the United States and its allies. The war has led to the deaths of several Ukrainian civilians and traders from around the world have sought to donate digital currencies to Ukraine to ensure the country’s military has the resources it needs to fight back.
Russia Is Having a Harder Time
By contrast, crypto is potentially getting shut out in the opposing nation of Russia, with several politicians in the United States pressuring exchanges to cut off all services to the eastern nation. While trading platforms like Coinbase and Kraken have gotten in the way of what they felt were illicit addresses stemming from Russia, however, executives have stated that they are not looking to cut off their services to everyday Russians given the heavy dips incurred by the ruble, the nation’s fiat currency.
Brian Armstrong – the CEO of Coinbase – says that Russian citizens that have played no role in the invasion of Ukraine have just as much a right as anyone to keep their wealth stable and steady during times of economic strife, and they have the option of turning to crypto to do so.