Ukraine Legalizes Crypto Amid Soaring Crypto Donations

On March 16th, the government of Ukraine legalized crypto by signing into law a bill on virtual assets. Crypto donations have played a big role in assisting Ukraine, over $100M+ have been raised in donations. In a country whose financial infrastructure has been crippled by war, crypto is a more resilient and friction free alternative.

The new law puts out a framework for the launch of a legal market for virtual assets in Ukraine.

Міністерство цифрової трансформації України @mintsyfra

Ukraine has legalized the crypto sector — @ZelenskyyUa signed a law. From now on foreign and Ukrainian cryptocurrencies exchanges will operate legally and banks will open accounts for crypto companies. It is an important step towards the development of the VA market in Ukraine.

At the start of the war the government of Ukraine put out an official plea on Twitter to donate in cryptocurrencies and has many times on Twitter expressed gratitude towards the crypto community for their financial support.

Mykhailo Fedorov @FedorovMykhailo

Dear crypto community, you are awesome! We are grateful for such a massive support. Every donation matters. Our Crypto Fund has just reached $60 mln. Cryptocurrencies do real impact. https://t.co/7GVYGniGXh

Aid For Ukraine @_AidForUkraine

Over $60M contributed, with $10M donated in a few days! Thanks @FinancialTimes & @CristinaCriddle! "As the war has continued, the government has refined its approach. This week, it launched an official @_AidForUkraine website" #HelpUkraineWithCrypto at https://t.co/nEFnqSk4Pw https://t.co/hI0eHG81He https://t.co/RsMuOuIEhn

Besides donating to Ukraine’s Crypto Fund, the crypto community has also made large donations to other nonprofit organizations providing direct relief to Ukrainians. You can read about the top crypto fundraising campaigns and contributions here

“Crypto had become an essential tool of war, allowing flexibility and speed.” - Alex Bornyakov, Deputy Minister of Digital Transformation of Ukraine in an interview with Financial Times.

Financial Times Interview with Ukraine’s Deputy Minister of Digital Transformation provides a great understanding on why and how the government embraced cryptocurrencies.

 If you have any questions or ideas reach out to me on Twitter or leave a comment on my substack.

Disclaimer: This article should not be taken as, and is not intended to provide, investment advice.