Ukraine legalised cryptocurrency on Thursday, even as conflict with Russia have rattled global markets over the last week, due to fears of a larger war including over 100,000 Russian troops stationed near the Ukrainian frontier.
” Ukraine is already one of the top 5 countries in terms of the use of cryptocurrency. Today, we made a further step forward when Parliament passed the law regarding virtual assets! This law will make crypto exchangers legal as well as cryptocurrencies, so Ukrainians can safeguard their assets from misuse or fraud.” declared UkraineVice Premier Mykhailo Fedorov on Twitter.
Bitcoin donations have increased to Ukrainian hacking and volunteer groups, and some have provided equipment to the government forces according to an analysis that shows these groups have received more than $550,000 worth of cryptocurrency by 2021.
The report, which was published by the blockchain research company Elliptic The report suggests that digital currencies are increasing in importance as a way to fund for groups of volunteers supporting Ukraine’s government as concerns of an attack from Russian forces gathered near the border with Russia grow. Moscow isn’t planning any attack.
The cryptocurrency was worth just $6,000 created by the organizations in the year 2020. Elliptic said.
The cryptocurrency can be used to send and receive funds in anonymity, which allows organizations to raise funds even if financial institutions do not permit or require strict controls on the transfer of money.
“Cryptocurrency has proven to be a reliable and expanding alternative (to traditional currencies), particularly in the case of donations from different nations,” Elliptic said.
in 2020 Ukraine has tightened its checks in order to stop money laundering and required ID verification for certain local cash transfers. Transfers across borders are subject to mandatory surveillance according to the Ukrainian National Bar Association.
Elliptic monitors the movement of cryptocurrency through the blockchain system for banks and government agencies. It reported that one organization that is based in Kyiv, Come Back Alive, began soliciting funds from cryptocurrency in the year 2018 and has received cryptocurrency worth nearly $200,000 during the second quarter of 2021.