Ukraine legalizes cryptocurrency as it receives millions in crypto donations

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Ukrainian President Volodymyr Zelenskyy has signed into law a bill that will make it legal to use cryptocurrencies in the country. The decision comes as Ukraine has received donations worth tens of millions of dollars from individuals and groups hoping to help the country with its war effort against Russia.

The bill signed by Zelenskyy creates conditions for the launch of a legal market for virtual assets in Ukraine. The state says it will protect citizens' holdings of cryptocurrencies with the same legal force as the hryvnia.

Ukraine has legalized the crypto sector — @ZelenskyyUa signed a law. 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 market in Ukraine. pic.twitter.com/lqqO1J9r1k

— Міністерство цифрової трансформації України (@mintsyfra) March 16, 2022

Mykhailo Fedorov, Ukraine's Vice Prime Minister and Minister of Digital Transformation, said in a post on Telegram that the law would bring thecryptocurrencies out of the shadows.

The beginning of the war made cryptocurrencies a powerful tool for attracting additional funding.

The war between Russia and Ukraine is being played out with the help of cryptocurrencies. It has been seen as a possible way for Russians hit by financial sanctions to get back on their feet. The country's invasion by neighboring Russia has led to a surge in trading on the domestic exchange Kuna. Legal recognition of thecryptocurrencies sector should help alleviate some of the problems associated with swapping virtual assets for fiat.