The Ukrainian government has a plan to legalize the cryptocurrency industry. The draft bill passed its first hearing on Tuesday, receiving 229 yes votes out of 340. The bill would establish licenses for crypto businesses, and implement state policy in the space. The move comes as Russia’s invasion of Ukraine continues. The use of cryptocurrencies in the conflict has been vital to relief efforts.
In recent weeks, cryptocurrency has gained significant popularity in Ukraine, and the government has used the funds for a variety of purposes. Donations of non-fiat currencies (NFTs) have gone towards funding humanitarian aid efforts. However, none of the donated NFTs have been sold. Because these assets are hard to sell, Ukraine has kept the crypto holdings in reserve. The government has used $15 million of its crypto reserves to purchase non-lethal military gear. The Ukrainian Ministry of Finance says that 40 percent of their suppliers will accept crypto transactions as payment.
As the Russian invasion continues, the Ukrainian government is working to legalize the crypto sector and accept donations in crypto as payment. Although the government has yet to sell any of the donated NFTs, it’s a welcome addition to the country’s economy. In fact, it has even started minting NFTs and using the funds for military gear. This year, the government will have the means to use more than $15 million in its cryptocurrency reserves.
The Ukrainian government has been using its crypto donations for various purposes. While none of the donated NFTs have been sold, the government has converted them into euros and dollars and held them in reserve. The government has also been converting the non-lethal military gear it needs into cryptocurrency. In fact, 40 percent of the suppliers willingly transact in crypto. So, the Ukrainian authorities are taking a proactive step toward legalizing the cryptocurrency industry.
The new law in Ukraine is a welcome development for crypto companies. As the country’s first cryptocurrency exchange, it’s expected to convert crypto to fiat currency and offer services to investors. It’s not clear what the legislation will require of these businesses, but the new law will make it easier for firms in the country to do business in the country. The cryptocurrency industry is a growing industry, and this regulation will help the economy grow.
Despite the new law, crypto donations are not a big concern for the country. The country has received millions of dollars in cryptocurrency donations since Russia invaded the country. But the recent legalization of the crypto sector in Ukraine is an important step in this process. Currently, the cryptocurrency industry is not yet fully regulated, but the government is preparing the changes necessary for the currency to be a legitimate and safe alternative.