Legislators have given their nod to the Ukraine crypto bill, making the use of crypto assets in the country easier as Ukraine teeters on the verge of a military confrontation with Russia.
With 272 votes, the Ukrainian parliament gave its thumbs-up for the Law of Ukraine on Digital Assets. The measure required only 226 affirmative votes to pass.
Ukraine’s Vice Prime Minister Mykhailo Fedorovon confirmed Thursday that the country’s Parliament has passed a law legalizing cryptocurrency.
Fedorovon further stated that this measure will safeguard Ukrainians’ assets against possible abuse or fraud.
Fears Surrounding Ukraine Crypto Bill
The Ukraine crypto bill was the government’s second effort at legalization 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 associated with money laundering and financing of illegal operations.
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Related Reading | Bitcoin Donations Are Aiding Ukraine In Fight Against Russia
Earlier, Sarah Breeden, the Bank of England’s executive director for financial stability, warned businesses to be “vigilant” about cryptocurrency.
The bill’s passage on Friday does not make Bitcoin legal currency. At the moment, El Salvador is the only country to have legalized Bitcoin.
Additionally, reports have it that the Securities Commission of Ukraine will now give permits to Bitcoin and cryptocurrency service providers. It will also supervise and monitor the market’s financial activity.
Ukraine is preparing the necessary reforms to its tax and civil legislation to facilitate the establishment of a full-fledged market for virtual assets.
Possible Russian Attack Overshadows Crypto
The Ukraine crypto legalization comes as tensions with Russia have thrown global markets into a tailspin over the last few days because of ongoing jitters of an all-out war.
Near Ukraine’s border, Russia has gathered more than 100,000 troops.
Bitcoin donations have been flowing in to Ukrainian volunteer and even hacker groups as a result of this development.
According to reports, certain groups have supplied government forces with equipment. These organizations received over $550,000 in cryptocurrencies in 2021 alone.
Related Reading | Why Is Ukraine Is Doing An “El Salvador” And Making Bitcoin Legal Tender?
Hackers Use Crypto To Buy Military Hardware
Specifically, activists have used cryptocurrency to procure military equipment, medical supplies, drones, and even facial recognition software that enables users to identify “militants, Russian mercenaries, and war criminals.”
Meanwhile, the Ukrainian government stated that the country ranks fifth globally in terms of overall cryptocurrency users.
The government views the newly enacted law as the first step toward establishing “a leading country for corporate development in this creative industry.”
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