In the midst of the war, Ukrainian President Volodymyr Zelenskyy signed a law that effectively legalized the cryptocurrency sector in his country.
The decision comes as Ukraine receives multiple cryptocurrencies worth tens of millions of dollars from individuals and groups hoping to help the country's war effort against Russia.
The bill signed by Zelenskyy was approved by the Ukrainian parliament last month and creates conditions for the launch of a legal market for virtual assets in Ukraine.
This decision allows Ukrainian banks to open accounts for crypto companies, as well as appointing the National Bank of Ukraine and the National Securities and Stock Market Commission as financial supervisors for this sector.
In addition, as quoted from The Verge, the legalization of cryptocurrencies also means that crypto exchanges and companies that handle other virtual assets must register with the government. Ukraine says it will protect its citizens' cryptocurrency holdings with the same legal force as its fiat currency, the hryvnia
In a post shared on Telegram, Deputy Prime Minister of Ukraine and Minister of Digital Transformation Mykhailo Fedorov, said that the law would bring the crypto sector clearer and out of the "shadows".
"With the start of the war, cryptocurrencies became a powerful tool for attracting additional funds to support the Ukrainian Armed Forces," Fedorov wrote.
During more than three weeks of wartime situations, Ukrainian crypto funds have accumulated more than about USD 54 million in cryptocurrencies. Other sources also say that Ukraine has received almost around USD 100 million in crypto donations.
To note, cryptocurrencies play an important role in the war situation between Russia and Ukraine. Apart from being the main vector for donations to Ukraine, cryptocurrencies are also seen as a lifeline for Russians who are subject to financial sanctions.
Ordinary Ukrainians are also buying crypto assets, as can be seen from their increasing numbers. Trading on the Kuna domestic exchange recorded a 200% jump following the country's invasion by neighboring Russia.
During this time, exchanging virtual assets for fiat to make purchases was often still a necessary and difficult process. However, with legal recognition of the crypto sector, it will help address a number of these problems.