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Ukraine Crypto: Lawmakers Legalize Cryptocurrencies as Fears of a Russian Attack Rise

Ukraine Crypto: Lawmakers Legalize Cryptocurrencies as Fears of a Russian Attack Rise

Lawmakers have given their approval to Ukraine’s crypto bill, making it easier to use crypto assets in the country as Ukraine stands on the brink of a military confrontation with Russia.

With 272 votes, the Ukrainian parliament approved the Ukrainian law on digital assets. The measure only needed 226 affirmative votes to pass.

Ukrainian Deputy Prime Minister Mykhailo Fedorovon confirmed Thursday that the country’s parliament has passed a law legalizing cryptocurrencies.

Fedorovon further stated that this measure will protect Ukrainians’ assets from possible misuse or fraud.

Fears Surrounding Ukraine’s Crypto Bill

Ukraine’s crypto bill was the government’s second legalization effort in less than five months.

In early October, President Volodymyr Zelensky blocked a measure establishing a new independent regulatory committee to regulate cryptocurrency exchanges.

Virtual assets, according to the National Bank of Ukraine, are a possible source of risk.

While there were benefits, there were also concerns related to money laundering and the financing of illegal operations.

Total BTC Market Cap at $765.944 Billion on Daily Chart | Source: TradingView.com

Related Reading | Bitcoin Donations Help Ukraine Fight Russia

Earlier, Sarah Breeden, executive director of financial stability at the Bank of England, warned companies to be “watchful” of cryptocurrencies.

Passing the bill on Friday does not make Bitcoin legal tender. At the moment, El Salvador is the only country that has legalized Bitcoin.

Additionally, reports indicate that the Ukrainian Securities Commission will now grant permissions to Bitcoin and cryptocurrency service providers. It will also supervise and control the financial activity of the market.

Ukraine is preparing the necessary reforms of its tax and civil legislation to facilitate the establishment of a complete market for virtual assets.

Potential Russian Attack Overshadows Crypto

Ukraine’s crypto legalization comes as tensions with Russia have plunged global markets in recent days due to lingering jitters of all-out war.

Near the border with Ukraine, Russia has mustered more than 100,000 soldiers.

Bitcoin donations have trickled down to Ukrainian volunteer groups and even hackers as a result of this development.

Some groups reportedly provided equipment to government forces. These organizations have received more than $550,000 in cryptocurrency in 2021 alone.

Related Reading | Why is Ukraine making an “El Salvador” and making Bitcoin legal tender?

Hackers use crypto to buy military hardware

Specifically, activists have used cryptocurrencies to acquire military equipment, medical supplies, drones, and even facial recognition software that allows users to identify “militants, Russian mercenaries, and war criminals.”

Meanwhile, the Ukrainian government has stated that the country ranks fifth in the world in terms of overall cryptocurrency users.

The government sees the newly enacted law as the first step in establishing a “leading country in the business development of this creative industry.”

Featured image from TheNewsCrypto, chart from TradingView.com