The Ukrainian Parliament unanimously agreed to legalize Bitcoin and cryptocurrencies by passing a Virtual Assets bill on February 17 amid inevitable military potential conflicts growing tensions between Ukraine and Russia before the upcoming full-blown war.
According to a statement from the Parliament, the legislation known as the “Law of Ukraine on Virtual Assets” was enacted with at least 270 votes in favor.
The law lays out the rules that crypto service providers, like exchanges, must follow, as well as the sanctions that will be imposed if they do not.
Given that Ukraine is among the top five countries regarding crypto usage, Ukrainian deputy prime minister Mykhailo Fedorov thought that the bill would allow crypto enterprises to operate within the country’s borders.
He stated that the new law provides an additional possibility for our country’s economic development. Foreign and Ukrainian crypto firms will be able to operate lawfully, and Ukrainians will be able to access the global market for virtual assets conveniently and securely.
However, the passage of the bill does not imply that the use of Bitcoin as legal money is now legal. According to Nasdaq.com, the Securities Commission will supervise the crypto market and grant permits to service providers, the nation’s according to Nasdaq.com, citing a story from Bitcoin Magazine.
The legalization of Bitcoin in the country comes at a critical moment when tensions with Russia have risen, as Russia has deployed over 100,000 troops to the border, despite Russian assertions that part of the troops have been evacuated.
On the other hand, US President Joe Biden recently stated that Russia is ready to invent grounds to invade Ukraine, predicting that an attack will occur within the next few days.
As a result, volunteers and non-governmental organizations in Ukraine have received Bitcoin donations to help the army with drones, medical supplies, and military equipment.