Ukraine’s Crypto Law Could Be A Lifeline For The Country’s Economy

Ukraine’s President approved a virtual assets bill earlier this week, creating a framework for cryptocurrencies in the war-torn country. As the country confronts increased pressure from invading forces, the move comes as the country’s demand for capital grows.

The country’s new cryptocurrency legislation may open the way for speedier and more efficient monetary flows. Ukraine, on the other hand, has yet to go all-in on cryptocurrency, as El Salvador has done by legalizing Bitcoin as a form of payment.

However, it may only be a matter of time. Mykhailo Fedorov, Ukraine’s vice prime minister and minister of digital transformation, told Tech Crunch:

“So we strive to be as friendly to virtual assets as possible. And we are continuing this effort during wartime as well”

A crypto solution Ukraine

Under the new crypto framework, digital asset exchanges such as the country’s first — Kuna — will be able to convert cryptocurrencies into fiat without regulatory hassles. Before the new legislation, Ukrainian crypto exchanges were limited to crypto-only conversions.

The newly opened fiat on and off-ramps will make it easier for citizens, companies, and governmental organizations to freely convert to and from digital assets adding more liquidity to the flow of capital to and from the country.

Additionally, Ukraine has partnered with the FTX crypto exchange to aid in the conversion of crypto contributions into fiat to deposit at the National Bank of Ukraine.

The crypto movement in Ukraine is garnering worldwide attention. On March 17, Wired magazine ran a piece declaring that the country’s Digital Ministry is a “department run by savvy tech “freaks” that has become a surprise defense against Russia.”

Donations near $100M

Deputy Minister of Digital Transformation, Alex Bornyakov, has been pushing the crypto relief effort as digital donations continue to pour in.  

“We believe this is the new economy, this is the future, and we believe this is something that is going to boost our economy.”

Everstake, FTX, and Kuna have teamed up with the Ukrainian government to establish a contribution platform that accepts SOL, DOT, DOGE, ADA, LUNA, and XMR, among other cryptocurrencies.

The portal had collected $55 million in donations less than five days after its inception on March 14, at the time of writing.

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