Amid a war with Russia, the President of Ukraine, Volodymyr Zelenskyy, has approved the use of cryptocurrency as investment and payment option in the country.
The Verkhovna Rada of Ukraine (Supreme Council of Ukraine) the country’s parliament, had initially threw it weight behind the legalisation of cryproassetss on February 17, 2022, before Zelenskyy signed the regulation into law on Wednesday.
It was gathered that domestic and foreign cryptocurrency exchanges are now officially legal to operate within Ukraine, which has been invaded by Russia since February 24.
Ukraine’s decision to adopt the digital currency comes after the country received $100 million worth of crypto donations to financially support the government’s effort against Russia.
Reports came through that Ukrainian government sought donations in Bitcoin, Ethereum and USDT in February. co-founder of Ethereum, Vitalik Buterin, and FTX chief executive, Sam Bankman-Fried, are some of the crypto heads supporting Ukraine with digital assets.
Aside from cryptocurrency exchanges receiving approval to operate, banks have now been directed to allow crypto trading by opening accounts for interested individuals and businesses.
This move by Ukraine follows Russia’s adoption of cryptocurrency operation amidst the war with their neighbour three weeks ago, although Bank of Russia and the country’s Ministry of Finance had disagreed over the regulation.
Ripples Nigeria reported in February that Bank of Russia wanted cryptocurrency banned in the country, but the Finance Ministry was in support of the digital asset – the latter got the backing of the Russian government.
Ukraine and Russia joins twelve other countries and the European Union, where bitcoin and crypto are legal; The United States, Canada, El Salvador, Australia, Denmark, France, Germany, Iceland, Japan, Mexico, Spain and United Kingdom.
While the cryptocurrency trading remains banned in Nigeria since February 2021. The Central Bank of Nigeria (CBN) led by Godwin Emefiele, says digital assets are used by criminals for fraudulent activities.
The list of countries that legalised crypto and the new entrants being Ukraine and Russia has dented Emefiele’s claim, but the CBN has launched Central Bank Digital Currency (CBDC), which is government-backed digital asset.