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Parliament of Ukraine Passes Bill to Legalize Crypto

Bitcoin and other virtual assets are now legal in Ukraine, following a recent passing of votes within the Ukrainian parliament. The draft bill which has now been passed on second reading was initially vetoed by the President in September.

President Zelensky cited at the time that it was impractical to create a fresh regulatory body to exclusively oversee Bitcoin or other crypto assets.  The bill was returned to the parliament, which would make adjustments based on Zelensky’s recommendations. Six months after Zelensky’s instructions, the draft bill underwent a final reading, that saw it receive majority votes on Thursday.   

Although citizens could buy and exchange cryptocurrencies prior to the law, crypto companies and exchanges faced strict monitoring by authorities.

The new “Law of Ukraine on Virtual Assets” will relax this monitoring and protect the crypto assets of Ukrainians. Announcing the development on Twitter, the country’s Minister for Digital Transformation, Mykhailo Fedorov, wrote about the importance of the new regulation. 

Ukraine is already in top-5 countries on cryptocurrency usage,” he said. “Today we made one more step forward: Parliament adopted law on virtual assets! This will legalize crypto exchangers and cryptocurrencies, and Ukrainians could protect their assets from possible abuse or fraud.”

Crypto Amidst Ukraine-Russia Tensions

The new law arrives amid the tensions between Ukraine and Russia which have unsettled several markets, including the crypto market. However, despite global concerns, the tensions have underscored the freedom of transactions associated with cryptocurrencies. Bitcoin researcher, Elliptic, reported that Ukrainians are using Bitcoin to crowdfund the fight against Russia. Volunteer groups and NGOs such as Come Back Alive, Ukrainian Cyber Alliance, and Myrotvorets Center have received crypto funds of over $570,000 since 2021.

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Ukraine is one of the top adopters of cryptocurrencies in the world. The country, which was once a nuclear powerhouse, was aiming to become the crypto capital of the world — until the Russian crisis began. With its tech talents, low taxes, and minimal bureaucracies, the country has been mooted to achieve its aim. However, the increase of Russian troops at Ukrainian borders could be a turn-off for investors. 

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