President Volodymyr Zelenskyy signs the crypto bill immediately on Wednesday as donations pour in from across the globe to Ukraine in cryptocurrencies.
President Zelenskyy Signs New Crypto Bill
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Ukraine receives more than $100 million as crypto donations to support its defense system. Digital asset donations are pouring into Ukraine to provide support against the Russian attack.
A new law signed by the Ukraine President on Wednesday legalizes the use of cryptocurrencies. All regulatory requirements, ownership, and legal status of virtual assets for crypto service providers are mentioned in the new law.
The National Securities and Stock Market Commission of Ukraine (NSSMC) will regulate the crypto market. The National Bank of Ukraine (NBU) will be another regulatory body. The NSSMC will issue permits and oversee the crypto service provider activities. Cryptocurrency exchanges in Ukraine will operate with banks to receive and send crypto.
The Ministry of Digital Transformation states that the crypto sector will operate legally in Ukraine. Banks and crypto exchanges will operate hand in hand, says the ministry. Crypto companies can open accounts through banks. It is an important step in virtual assets in Ukraine.
Ukraine gets donations in cryptocurrencies for defense purposes and to help people amid the crisis. The country received more than $100 million through crypto donations in the past three weeks. The funds help to support the defense sector and provide humanitarian assistance for those who are homeless and hungry,
Crypto Law Initially Signed in February
The draft to pass the crypto bill was already in place in Ukraine. The draft was kept ready for the President’s signature. But the war put things on hold.
The need to legalize the bill made the President sign the law immediately. On Wednesday, President Volomyr Zelenskyy signed the law to put it into immediate action and made cryptocurrencies like Bitcoin and Ethereum legal.
The number of crypto users in Ukraine has been growing, and discussions to legalize the virtual assets were already on. But the war put on hold all crypto discussions.
Ukraine receives support from most western countries. The US and the UK have raised sanctions on Russia to bring the war to an end, but Russia refuses to yield to sanctions.
Ukraine receives donations In fiat currencies like the US Dollar and the Ukrainian Hryvnia. But the amount received through cryptocurrencies is higher.
The war is on for more than three weeks. Despite talks at the top level between the two countries, an agreement is yet to come.
Apart from moral support, the country received more than $ 100 million in crypto donations from various sources. The crypto donations are used to purchase military equipment and support the Ukraine defense force.
Growing Crypto Donations to Ukraine
Donations through Bitcoins, Ethereum, Litecoin, and other cryptocurrencies are pouring in from various parts of the world. Cryptocurrencies are known for making cross-border payments. It is a feature that is helping to protect the war-ravaged Ukraine. It is easier for donors to make payments through cryptocurrencies. The war in Ukraine is preventing the normal functioning of banks, and cryptocurrencies are the best alternative.
It is a new way to fund wars, say authorities. The cryptocurrency exchanges help convert donations received as Bitcoin, Litecoin, and other coins, into fiat currencies. The conversion is in US Dollars or the Ukraine currency, Hryvna.
Users prefer to send donations in crypto rather than through bank transfers.
“Come Back Alive” is a Ukrainian group that raises funds for the Ukraine attack against Russian forces. The group raised almost $5 million in crypto donations almost immediately to fund Ukraine.
But crypto donations are not encouraged in most places. Payment platforms like Patreon have suspended donations on Come Back Alive. It says that it is a campaign related to the purchase of military equipment.
The war between Russia and Ukraine began in late February 2022. But in 2014, Russia annexed the Ukrainian Crimean Peninsula. The relationship deteriorated between the two countries from 2014.
Cryptocurrencies Prices Boom after the Ukraine War
The Russia-Ukraine war began in the last week of February 2022. Bitcoin prices slid almost 16.5% in the first week of March when the war between the two countries first started.
But with crypto donations pouring into Ukraine, top crypto prices are soaring again. Bitcoin, Litecoin, and Ether donations are helping Ukraine combat the Russian forces.
Bitcoin prices slide from $44,900 on March 1 to $37500 in a week. However, BTC prices have recovered in Mid-March, trading at $40,900 on March 17, 2022.
Ethereum prices have gone down massively by 19.7% in the first week of March 2022. Litecoin prices dropped more than 10% during the same period.
Meme coins Shibu Inu and Doge coins fell sharply, following the drop in Bitcoin prices. But the meme coins did not recover much, unlike the top cryptocurrencies, Bitcoin and Ethereum.