Ukraine legalizes crypto as donations reach $100 million

Posted: 17 March 2022 7:18 pm
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Ukrainians can now exchange crypto for fiat currency, making it easier to put those crypto-based donations to work.

Ukrainian President Volodymyr Zelenskyy this week signed a bill on virtual assets that legalizes cryptocurrencies in the country. This follows a flood of donations made in crypto in the last few weeks to help Ukraine’s war effort that now total almost $100 million.

Ukrainian banks can open accounts for crypto exchanges

With the law in place, crypto exchanges and firms working with digital assets can register with the government and operate legally. Banks are now allowed to open accounts for these entities.

The law also tasks Ukraine’s National Commission on Securities and the Stock Market with regulating the crypto market and acting as a watchdog.

Ukraine’s first crypto exchange, Kuna, which has been limited to spending crypto donations with entities that accepted crypto, can now convert crypto to fiat currency. Ukraine has also partnered with the FTX exchange to convert crypto contributions into fiat for deposit at the National Bank of Ukraine.

Donations may be the reason digital assets were legalized

The country has been raising money through crypto since the war effort began. Those who want to donate can do so with Bitcoin (BTC), Ether (ETH) and Dogecoin (DOGE), among other cryptocurrencies.

Most of these donations likely go for military uses because Ukraine’s Defense Ministry allocates these funds. However, a portion of it goes toward medical supplies and food.

You can find more details about where these donations are spent on the Twitter feed of Alex Bornyakov, Deputy Minister of Digital Transformation of Ukraine on IT industry development.

For information on how you can support Ukraine and a list of vetted ways to give, including via crypto, visit our guide on how Americans can help Ukrainians. And learn how to give safely in this guide to avoiding scams.

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