Ukraine’s President Approves Crypto Legalization Policy Amid Ongoing Geopolitical Tension with Russia

Ukraine’s government has passed a national bill legalizing the cryptocurrency industry in the country. President Zelenskyy signed a law that approves virtual asset exchanges for legal operations and provides crypto companies with access to traditional banking facilities. 

• President Volodymyr Zelenskyy has approved a law to effectively legalize the crypto sector in Ukraine. The nationwide policy allows domestic and international digital asset exchanges to operate legally within Ukraine’s Jurisdiction.

• Also, the legalization framework enables local financial institutions to interact with exchanges, facilitate transactions, and open bank accounts for cryptocurrency firms.

• The latest news comes as Ukraine intensifies efforts to regulate the booming digital asset economy in the country and sustain access to financial support amid the ongoing geopolitical uncertainty with Russia.

• Previously in February 2022, the country’s parliament approved a bill aimed at legalizing cryptos. While the bill did not recognize bitcoin or other virtual assets as legal tender, the legislature sought to incentivize innovation and provide judiciary-backed protection for market participants.

• The virtual asset law signed by President Zelenskyy also aligns with Ukraine’s stance as a crypto-friendly jurisdiction. Chainalysis released a report back in October 2021 ranking the country fourth on its Global Crypto Adoption Index.

• With the crypto sector legalized, Ukrainian market supervisors could take on streamlined regulatory authority to ensure compliance with global standard policies such as anti-money laundering (AML) laws and travel rules from the Financial Action Task Force (FATF).