Ukraine legalises crypto as tensions with Russia escalate
Ukraine’s parliament has voted to legalise digital assets amid escalating tensions with its neighbour Russia.
Some 272 MPs voted in favour of creating a legal market place for digital assets which will give the nation’s financial regulator oversight of crypto. The country’s deputy prime minister stressed the importance of business development for the country even as the shadow of an invasion by Russia looms over the country.
“The new law is an additional opportunity for business development in our country. Foreign and Ukrainian crypto companies will be able to operate legally, while Ukrainians will have convenient and secure access to the global market for virtual assets. said Deputy Prime Minister Mykhailo Fedorov.
Market participants will receive legal protection and the opportunity to make decisions based on open consultations with government agencies. There will appear a transparent mechanism for investing in a new asset class,” added Fedorov, who is also a minister for digital transformation.
Ukraine is one of the top five countries in the world when it comes to crypto ownership, with a large community of digital asset investors and startups.
Recent analysis by blockchain analytics firm Elliptic found that crypto is also being used by Ukraine to finance its war efforts as relations with Russia continue to worsen. Crypto donations to Ukranian NGO and military groups increased by over 900 per cent in 2021 according to Elliptic topping $500,000.
Crypto’s ability to facilitate quick, cross-border transactions makes it particularly well suited for covertly financing political causes and groups.
Canada recently extended its terrorist funding laws to include crowdfunding and crypto over concerns protestors against its Covid-19 rules were funded with digital assets.
Read more: Canada emergency bill targets crowdfunding and crypto