Ukraine is a Beautiful Use Case for Crypto: Donations Pour In Globally
Bitcoin maybe, Bitcoin damn right!
Ukraine’s use case in crypto is a true glimpse of the digital ecosystem’s future
There’s something to be said for rooting for an underdog and hoping world peace can last. The Ukrainian government has been actively soliciting crypto donations. This has led the war-torn state to legalize crypto.
Zelenskyy and Crypto a Rite of Passage
Ukraine has passed a law that creates a legal framework for the cryptocurrency industry in the country.
The law allows foreign and Ukrainian cryptocurrencies exchanges to operate legally, according to the country’s Ministry of Digital Transformation.
Ukraine’s President Volodymyr Zelenskyy has signed the law as Russia’s war on Ukraine continues underscoring the important role that cryptocurrencies have taken on during the conflict.
I think it’s a heart warming story for how much the world cares about Ukraine. Ukrainian President Volodymyr Zelenskyy has signed into law a bill that effectively legalizes the cryptocurrency sector in the country.
The decision comes as Ukraine has received cryptocurrency donations worth tens of millions of dollars from individuals and groups hoping to help the country’s war effort against Russia.
The bill signed by Zelenskyy was approved by Ukraine’s parliament last month and “creates conditions for the launch of a legal market for virtual assets in Ukraine.”
As of March 16th, around three weeks into the War in the Putin invasion of Ukraine, Ukraine has received $100 million in crypto donations during its war with Russia.
That’s amazing! Ukraine has also received hundreds of millions of dollars in military and humanitarian aid that’s not in crypto.
Crypto in Times of Uncertainty
The “virtual assets” law determines the legal status, classification and ownership of virtual assets. It also introduces financial monitoring measures for virtual assets.
Ukraine’s National Securities and Stock Market Commission will regulate the market. The body will be in charge of areas including issuing licenses to crypto businesses and implementing state policy in the industry.
Zelenskyy has signed the law as Russia’s invasion of Ukraine continues, underscoring the role that cryptocurrencies have taken on during the conflict.
The law determines the legal status, classification, ownership and regulators of virtual assets, as well as setting registration requirements for crypto services providers, the Ministry of Digital Transformation said in a statement Wednesday.
It effectively allows Ukrainian banks to open accounts for crypto firms; appoints the National Bank of Ukraine and the National Commission on Securities and Stock Market as financial watchdogs for the sector, etc…
The Ministry of Finance is working on amendments to the country's tax and civil codes to fully launch the market for virtual assets, the statement said.
Last month, Ukraine began accepting donations toward its military defense against Russia via digital currencies like bitcoin and ether. It has since expanded the number of cryptocurrencies that it accepts for donations and has raised over $63 million (it’s believed to be closer to $100 million now) so far, according to blockchain analytics firm Elliptic.
There are a lot of scammy uses of crypto, this I don’t think is one of them. But there’s another side to this of course. Meanwhile, Crypto firms in the United Arab Emirates (UAE) are being deluged with requests to liquidate billions of dollars of virtual currency as Russians seek a safe haven for their fortunes, according to company executives and financial sources.
Crypto had been in legal limbo for some time in Ukraine, being neither legal nor forbidden due to a lack of legislation defining them and their usage. While buying and trading cryptocurrencies were permitted, there were no legal provisions to help those who fell victim to potential scams.
In several countries where there is not a specific cryptocurrency regulation like Ukraine, governments have sought to bring exchanges and other digital assets companies under the purview of financial regulators. For example, in the U.K., cryptocurrency exchanges must register with the Financial Conduct Authority and are subject to existing rules around money laundering.
So it’s interesting how Ukraine fast-tracked their own relationship with crypto to meet their donations needs that are urgent and where there are of course food shortages and refugees heading to Poland and a host of other countries.
It’s sad to witness a time of war again in the world and it’s awesome to see crypto doing some good in the world.
Crypto a lifeline for Ukraine's war effort
Following the beginning of the Russian invasion of Ukraine, Zelenskyy's government has actively encouraged donations in a range of cryptocurrencies to help fund weapons for the embattled Ukrainian armed forces.
In what is believed to be the first time crypto has been used in a war setting of this scale, sympathisers from around the world had flooded the Ukrainian government with an estimated $100 million (€90.9 million) in crypto donations at the time of publication.
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