What is Ukraine’s new law on cryptocurrencies?

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What is Ukraine’s new law on cryptocurrencies?

  • Ukraine has decided to establish a legal framework through which cryptocurrencies can be operated in the country in a regulated ecosystem.
  • The country’s parliament had in February passed the law to legalise cryptocurrencies, and its President signed it into a new law

What is Ukraine’s new law on cryptocurrencies

  • From now on, foreign and Ukrainian cryptocurrencies exchanges will operate legally and banks will open accounts for crypto companies.
  • It is an important step towards the development of the VA (virtual assets) market in Ukraine.

How will cryptocurrencies be regulated in Ukraine?

  • The cryptocurrency market in Ukraine will be regulated by its National Securities and Stock Market Commission, the equivalent of India’s Sebi.
  • The Ukrainian securities regulator will also have powers, under the new law, to determine policies on digital assets, issue licences to businesses dealing with cryptocurrencies, and act as a financial watchdog.

Why has Ukraine legalised cryptocurrency?

  • Ukrainians have been one of the most active retail users of cryptocurrencies, and there had been discussions in the country earlier to legalise these digital assets.
  • Latest trigger in this area has been Russia’s military action in Ukraine.
  • In light of the war, Ukraine has reportedly received more than $100 million in donations in the form of cryptocurrencies since the crisis began last month.