Ukraine Legalizes Cryptocurrencies Amid Russia Face-Off
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- Fintech companies and government organizations use Elliptic to keep tabs.
- Moscow denies that it is contemplating an assault.
Amid escalating tensions with Russia and the presence of more than 100,000 Russian soldiers on its border, Ukraine legalized cryptocurrencies on Thursday, a move that sent global markets into a tailspin.
Ukraine Vice Prime Minister Mykhailo Fedorov said:
“Ukraine is already in top-5 countries on cryptocurrency usage. Today we made one more step forward: Parliament adopted law on virtual assets! This will legalize crypto exchangers and cryptocurrencies, and Ukrainians could protect their assets from possible abuse or fraud.”
According to a report, in 2021, more than $550,000 worth of cryptocurrencies was sent to Ukrainian volunteer and hacker organizations, some of which have provided equipment to government troops. Furthermore, according to CoinMarketCap, the global crypto market cap is $1.86T, a 5.48% decrease over the last day.
Ukraine Tightened Laws in 2020
According to a study issued by blockchain researcher Elliptic, there is a rising concern of a Russian invasion of Ukraine due to the Russian military stationed near its border. Moscow denies that it is contemplating an assault.
According to Elliptic, the organizations raised only $6,000 in cryptocurrency in 2020. Because of the anonymity of cryptocurrency transactions, non-profits may solicit cash even if banking institutions don’t allow – or strictly scrutinize – the transfer of funds.
In 2020, Ukraine tightened laws on transactions and required ID verification for certain domestic currency transactions to combat money laundering. According to the Ukrainian National Bar Association, cross-border transactions must also be rigorous monitoring and auditing. Fintech companies and government organizations use Elliptic to keep tabs on the flow of cryptocurrencies over the blockchain.
Cryptocurrency
