The law signed by Zelensky was approved by the Ukrainian parliament last month and “creates the conditions for the introduction of a legal market for virtual assets in Ukraine.” It allows Ukrainian banks to open accounts for crypto companies; appoints the National Bank of Ukraine and the State Securities and Equity Markets Commission as financial supervisory bodies for the sector; and, as reported by Cointelegraph, means that crypto exchanges and companies that manage other virtual assets will have to register with the government. The state says it will protect citizens` cryptocurrency holdings with the same legal force as its fiat currency, the hryvnia. Ukrainian President Volodymyr Zelensky has legalized crypto in the country and signed a law on virtual assets, amid a frenzy of donations for digital assets to help defend the country from a Russian invasion. “The signing of this law by the president is another important step to bring the crypto sector out of the shadows and create a legal market for virtual assets in Ukraine,” the Ministry of Digital Transformation said in a statement on its website on Wednesday. It also describes fines for violations and legal protection of investors against fraud. Eight states, led by California and New York, have filed a lawsuit against Nexo, underscoring growing concern about companies offering unregistered crypto loan products. Purushottam Anand, a lawyer and founder of the law firm Crypto Legal, claims that the legalization of crypto is very different from the production of cryptocurrencies such as Bitcoin as legal tender. “Legalization refers to making it legal to engage in various activities such as buying, selling, minting or trading cryptocurrencies, while converting them into legal tender currencies would mean that cryptocurrencies must be accepted by everyone when offered for payment,” he said. In the midst of the war against Russia, Ukraine has legalized the crypto sector.
President Volodymyr Zelensky signed a law to this effect on 16 March 2022. “From now on, foreign and Ukrainian cryptocurrency exchanges will operate legally and banks will open accounts for crypto companies. This is an important step towards the development of the VA (Virtual Asset) market in Ukraine,” the Ukrainian Ministry of Digital Transformation tweeted. Ukraine`s ministry and digital transformation committee confirmed the news in their official statement, also issued on Wednesday, saying the law allows for the development of a way to create clear oversight and regulatory accountability of digital assets by government agencies. It also sets parameters regarding the ownership, classification and legal status of various cryptocurrencies. The country`s parliament has backed an updated bill to legalize Bitcoin and cryptocurrencies in last reading. “MoneyLion targeted military families by illegally collecting fees and making it difficult to cancel monthly subscriptions,” CFPB Director Rohit Chopra said in a statement announcing the lawsuit. “Companies break the law when they charge a monthly membership fee to get loans, and then create barriers to terminating those memberships.” The new law, which received the president`s signature on Wednesday, will allow foreign and Ukrainian crypto exchanges to operate legally in Ukraine, which is seen as an important step towards developing a legal market for virtual assets in the country. The California legal ruling comes shortly after the crypto industry won a significant victory in the state when Gov. Gavin Newsom vetoed a bill that would have required crypto companies to obtain a state license. The proposal was approved by an overwhelming majority in the California Assembly and Senate. Ukraine`s Bitcoin bill allows the peer-to-peer currency to emerge from a “grey zone” by establishing clear legislation that understands how the asset should be treated legally and how institutions should behave when it comes to investor protection and insurance.
The Ukrainian parliament had already passed a law legalizing cryptocurrency last September, but President Volodymyr Zelensky vetoed the law the following month. Zelensky said Ukraine cannot afford to create an entirely new regulatory system for crypto management. “Foreign and Ukrainian crypto companies will be able to operate legally, while Ukrainians will have convenient and secure access to the global virtual asset market,” he said in a statement. “Market participants will benefit from legal protection and the ability to make decisions based on open consultations with government agencies,” Fedorov said in an official statement. The new law does not make cryptocurrency legal, but it does provide a regulatory structure for digital assets. The country`s Ministry of Finance is working on tax regulations and other rules for crypto, according to the government`s statement on the law. Nexo also faces legal challenges in Washington, Maryland, South Carolina, Oklahoma, Vermont and Kentucky, according to a DFPI representative in California. On Wednesday, Ukrainian President Volodymyr Zelensky signed a law that makes Bitcoin and Ethereum legal tender in the country. This decision was triggered by the fact that more than $100 million in crypto donations were made to support Ukraine`s war effort against Russian invaders. Crypto had been in a legal limbo in Ukraine for some time, as it was neither legal nor prohibited, as there was no legislation defining it and its use. While buying and trading cryptocurrencies was allowed, there was no legal provision to help those who were victims of potential scams.
On Thursday, the Ukrainian parliament passed a law legalizing cryptocurrency and prepared a framework for the regulation and management of digital assets such as Bitcoin. In an uncontested motion filed Thursday, the plaintiffs in the ongoing litigation, NetChoice and the Computer & Communications Industry Association, asked the court to “preserve the status quo” until the Supreme Court has a chance to consider the issues raised in the case. Texas law aims to prohibit online platforms from moderating content based on point of view, a restriction that tech companies say violates their First Amendment rights and conflicts with the broad power they have under Section 230 to moderate content. Bitcoin is now legal in Ukraine, as its parliament passed a bill in final reading that responds to the president`s recommendations. However, the country has not made Bitcoin a legal tender. Last September, President Zelensky rejected a similar bill to legalize cryptocurrencies. Ukraine is now the second country in the world to adopt crypto as legal tender, joining El Salvador, which made the decision last September to accept Bitcoin as legal tender. Cryptocurrency plays an important role in the war between Russia and Ukraine. Not only is it a major vector of donations to Ukraine, but it has also been seen as a possible lifeline for Russians affected by financial sanctions. Ordinary Ukrainians have also bought crypto assets in increasing numbers, with trading on the kuna national exchange increasing by 200% after neighboring Russia invaded the country. Exchanging virtual assets for fiat to make purchases is still often necessary and difficult, but legal recognition from the crypto industry should help alleviate some of these problems.
In particular, the bill does not recognize Bitcoin or other cryptocurrencies as legal tender. Ukraine has not followed the path of El Salvador, which introduced Bitcoin as the official currency in September last year. But the new law will ensure the safety of companies operating in a previous legal grey area. The bill, which was passed by Ukraine`s parliament last month, paves the way for “a legal market for virtual assets” in the country, according to a statement from Ukraine`s Ministry of Digital Transformation. Ukraine has joined the list of countries that have legalized the crypto sectors. Other countries are likely to do the same. Ukrainian President Volodymyr Zelensky has signed a law that effectively legalizes the cryptocurrency sector in the country. The decision comes as Ukraine has received tens of millions of dollars in cryptocurrency donations from individuals and groups hoping to support the country`s war effort against Russia. “This will legalize cryptocurrency exchanges and cryptocurrencies, and Ukrainians could protect their assets from possible abuse or fraud,” Ukrainian Deputy Prime Minister and Minister of Digital Transformation Mykhailo Fedorov announced on Twitter.