Bitcoin (BTC) becomes legal in Ukraine as the country prepares for a possible war

Key Takeaways

• The parliament of Ukraine has passed a bill legalizing Bitcoin (BTC) in the country
• The adoption comes a week after rival Russia legalized cryptocurrencies

YEREVAN (CoinChapter.com)- Legislators in the Ukrainian parliament have voted in favor of legalizing Bitcoin (BTC) and other cryptocurrencies in the country. The decision comes a week after arch-rival Russia also legalized BTC. Both the countries are currently on the brink of war after Russia deployed a huge number of its troops on the country’s border. 

The Ukrainian Parliament, known as the Verkhovna Rada (Supreme Council), passed bill no. 3637, with 272 votes, legalizing cryptocurrency in the country. The total strength of the parliament is 450, but 27 seats from Donbas and Crimea remain vacant. Hence, the bill only required 226 yes votes to pass. 

The country’s Deputy Prime Minister, who also serves as the minister of digital transformation, confirmed the news on Twitter. 

“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,” 

 he wrote.

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.

— Mykhailo Fedorov (@FedorovMykhailo) February 17, 2022

Also Read: El Salvador’s Bitcoin-loving president slams the US. “We are not your colony!”

Bitcoin (BTC) bill recovers after an innitial presidential veto

The Law of Ukraine “On Virtual Assets” had already passed parliament last year. In September 2021, the Ukrainian parliament gave its nod to legalizing cryptocurrencies like Bitcoin in the country. However, the country’s president Volodymyr Zelensky used his veto power to revoke the bill the following month. 

Zelensky vetoed the bill and sent it back to parliament for changes in early October. An amended version of the bill passed on Feb. 17.

— AM (@amorris290491) February 17, 2022

The bill had envisioned the creation of a new independent regulatory body to oversee crypto exchanges, which the president found out of the country’s budget. He hence returned the bill to the parliament with his recommendations.

After incorporating president Zelensky’s proposals, the bill legalizing Bitcoin (BTC) received its final approval from the deputies. 

The legislation will become a law after getting the president’s signature.

Following the adoption, citizens in Ukraine can legally own and trade in crypto. In addition, they can open bank accounts to do transactions with crypto assets, including Bitcoin (BTC) and Ethereum (ETH). 

https://twitter.com/LeeorShimron/status/1494344679831359494

However, unlike El Salvadore, Ukraine has not made Bitcoin a legal tender. Citizens will not be allowed to pay for goods and services in cryptocurrency. Nonetheless, the news comes as a positive development for the crypto community.