Category: Ukraine

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Crypto News NFTs Ukraine

Ukraine Launches Website for Donating and Buying NFTs

The Ukrainian government has launched a website for NFT (non-fungible token) donations in an attempt to raise funds to aid the country’s military forces in their ongoing conflict with Russia.

Supporting the Ukrainian Military With NFT Donations

The new marketplace, which comes with an ETH address for everyone wishing to donate, will host a wide range of NFTs, including the popular MoonCat collection and the Ethereum-based CryptoPunks.

Government NFT marketplace. Source: Ministry of Digital Transformation of Ukraine

So far, the Ukrainian government has received over US$100 million from crypto donations, an amount acquired shortly after digital assets exchange Kraken and the Bored Ape Yacht Club (BAYC) joined the charitable efforts last month.

The proceeds were largely used to buy the necessary equipment for Ukraine’s military arm, including bulletproof vests, medicine, and general supplies.

Blockchain, crypto and NFTs will not stop missiles, said Alex Bornyakov, the Deputy Minister of Digital Transformation of Ukraine, “but [they] do offer a way to protect our defenders and rebuild Ukraine as an innovation-friendly country”:

While the Ukrainian government is happy to attract crypto donations, recent news of its limiting crypto purchases has baffled the wider community. As Crypto News Australia reported last week, the National Bank of Ukraine has prohibited citizens from buying more than 100,000 UAH (approximately US$3,400) worth of crypto per month.

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Binance Binance USD Crypto News Payments Ukraine

Binance Launches Refugee Crypto Card with 75 BUSD for Displaced Ukrainians

Binance has launched a crypto card for Ukrainians forced to flee across borders to other European countries due to the ongoing war with Russia.

The Binance Refugee Crypto Card. Source: Binance

The Binance Refugee Crypto Card allows current and new Binance customers from Ukraine to send or receive crypto payments and make purchases at retailers in the European Economic Area (EEA) who accept card transactions.

Binance has already donated US$10 million to aid the humanitarian crisis in the region. The contribution was split among organisations including UNICEF, the UN Refugee Agency, UNHCR and more.

The Binance refugee card has been launched in partnership with Contis, a UK-based banking platform, and is available in both virtual and physical formats.

More Than 4 Million Potential Beneficiaries

According to Kirill Khomyakov, general manager of Binance in Ukraine, more than 4 million people have already fled the country:

It is our responsibility to help those who were forced to leave their homes because of the war.

Kirill Khomyakov, general manager of Binance, Ukraine

Khomyakov added that Binance Charity was collaborating with non-profit organisations such as Rotary and Palianytsia to offer crypto-based cash assistance through the Binance refugee card.

Refugees will each receive 75 Binance USD (BUSD), worth around $US75, per month for up to three months. BUSD crypto will automatically convert to local currency according to which country refugees find themselves in, and relatives or acquaintances of displaced Ukrainians are also able to send crypto to the refugee crypto card.

The card itself is free but requires full KYC (know your customer) verification.

Limits Placed on Capital Outflows

Though Ukrainian President Volodymyr Zelenskyy signed a crypto bill into law last month, this week Ukrainian citizens were banned from buying more than US$3,400 worth of crypto in a 30-day period. The country’s national bank said the measures had put in place under martial law to prevent “unproductive capital outflows” from Ukraine.

The National Bank of Ukraine said the measures were “temporary” and that it planned to allow citizens fleeing the country to make cross-border peer-to-peer (P2P) transfers within the above limit from accounts in its national currency.

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Crypto News Cryptocurrencies Cryptocurrency Law Regulation Ukraine

Ukraine Bans Citizens From Buying More Than $3,400 Crypto Per Month

Shortly after Russia’s invasion of Ukraine, crypto donations poured in from around the globe to help fund the war effort, eclipsing US$100 million. In a surprising twist, the nation’s central bank has now placed limitations on crypto purchases for its citizens:

Preventing ‘Unproductive Capital Outflows’

According to a National Bank of Ukraine (NBU) announcement, Ukrainians are now prohibited from purchasing digital assets using the country’s fiat currency, the hryvnia (UAH).

They are, however, permitted to purchase crypto up to a maximum of 100,000 UAH (approximately US$3,400) per month, provided it is done with foreign currencies. According to the announcement, these measures have been put in place under martial law to prevent “unproductive capital outflows” from the country.

The NBU commented that the measures were “temporary” and that it planned to allow those citizens fleeing the country to make cross-border peer-to-peer (P2P) transfers within the above limit from accounts in its national currency.

Not as Crypto-Friendly as Expected

With the Ukraine government being a beneficiary of crypto donations, even partnering with FTX to do so, the NBU’s move has been almost universally criticised on Twitter:

Capital controls are common, particularly during times of war, but there is something particularly stinging about this ban. Perhaps because it emanates from a nation that appeared to be progressive and on board with the crypto industry and community. It could also be the realisation that the NGU has effectively denied Ukrainians a financial offramp to further currency debasement, inflation and economic ruin.

As much of the developed world has “stood with Ukraine”, it’s evident that the latest measures represent just another blow for a population knee-deep in kinetic war:

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Cryptocurrency Law Regulation Ukraine

Ukraine’s President Signs Crypto Bill into Law Amid Fighting a War

Ukrainian President Volodymyr Zelenskyy has signed into law a bill that legalises the cryptocurrency sector and establishes a more favourable regulatory environment for virtual asset markets in the war-torn nation.

Ukraine had previously passed laws that recognised virtual assets, provided some consumer protections and clarified their tax status, but this new law goes much further towards creating a fully fledged legal framework for crypto:

Defined Legal Status, New Regulatory Body

In a statement released by the Ukrainian government on March 16 describing the new law, its main effects will be to:

  • determine the legal status and ownership rights of virtual assets;
  • appoint the National Bank of Ukraine and the National Commission on Securities and Stock Market as the regulators; and
  • determine who can provide virtual assets and handle registration.

Establishing the National Commission on Securities and Stock Market as the regulator of the crypto sector means that virtual assets will now be treated much more like traditional securities. 

The Ukrainian government says the new regulator will be given responsibilities including:

  • shaping policy in the field of virtual assets;
  • issuing permits to virtual asset service providers; and
  • conducting regulation, supervision and financial monitoring of virtual assets.

Crypto Seen As Source of Opportunities

The new law follows a massive influx of crypto donations into Ukraine from around the globe, with over US$100 million already donated.

But it’s not only crypto donations that have encouraged Ukraine to accelerate its adoption of crypto – the sector is a seen as a source of significant economic opportunities by the Ukrainian government. 

In a tweet following the signing of the new law, Alex Bornyakov, Ukraine’s Deputy Minister of Transformation, praised the move: 

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Crypto News Institutions Russia Ukraine

Report Shows Institutions Are Selling Crypto Amid Ongoing Geopolitical Uncertainty

Crypto-related investment products have suffered outflows of over 100 million in the past seven weeks amid ongoing geopolitical uncertainty, as stated in a recent report from digital asset manager CoinShares.

Institutions Sell Crypto Amid Regulatory Uncertainty

It was only little more than a month ago that Crypto News Australia reported how institutional adoption had accelerated following BlackRock’s decision to offer crypto trading services to its clients, but now it seems it has taken a 180-degree turn amid investors’ fear regarding the current geopolitical scene in Europe and regulatory uncertainty.

Given there has been little price response and that outflows of US$30 million were also seen in Europe, it highlights [that] the reasons are unclear. Regulatory concerns and geopolitics remain at the forefront of investors’ concerns for digital assets.

CoinShares report

Bitcoin and Ethereum Among the Most Affected Assets

At least 80 percent of the outflows come from North America-based companies, with Grayscale, Purpose, and ProShares leading the board. The exact reasons remain unclear, but CoinShares said it’s likely a response to US President Joe Biden’s latest executive order, which calls on the government to examine the benefits and risks of cryptocurrencies.

Flows by asset. Source: CoinShares

Bitcoin (BTC) and Ether (ETH) were the most affected cryptocurrencies, with outflows of US$70 and US$51 million, respectively. The altcoin market also had its share of inflows – mainly Solana (SOL), Ripple (XRP), and Polkadot (DOT).

Solana, Ripple and Polkadot saw minor outflows totalling US$0.3 million, US$0.7m and US$0.9m respectively, while Cardano and Litecoin saw minor inflows of US$0.2 million.

CoinShares report

Blockchain equity and multi-asset investment products have also taken a hit. As per the report, inflows amounted to US$12 million and US$4.1 million respectively.

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Charity Cryptocurrencies FTX Ukraine

Ukraine Partners with FTX to Launch Crypto Fundraising Website

Digital asset exchange FTX and the Ukrainian Ministry of Digital Transformation have come together to develop a platform for crypto donations to the besieged country’s war defence.

‘Aid for Ukraine’ is utilising FTX’s technology to convert crypto donations into fiat money, which is then distributed to Ukraine’s National Bank’s fundraising account:

Three-Way Partnership

Mykhailo Fedorov, Ukraine’s Vice Prime Minister and Minister of Digital Transformation, took to Twitter on March 15 to announce Aid for Ukraine, the result of a partnership between the nation, FTX and decentralised staking provider Everstake.

FTX and Everstake have been developing the necessary technology to convert incoming donations into fiat money that can be used by Ukrainians in need. The money is sent to the National Bank’s fundraising account and distributed appropriately, though some Twitter users have raised concerns about how their donations are being spent:

The donated funds are said to be sent directly to both the nation’s armed forces and civilians in need of humanitarian assistance. At the time of writing, over US$48 million had been raised via the platform.

The site currently accepts BTC, ETH, SOL, EOS, DOGE, XMR, USDT, DOT, ICON and NEO. Updates on how much has been raised by the community so far can be viewed on the Aid for Ukraine website.

Crypto Funds Ukrainian Defence Effort

Crypto donations are playing a large role in Ukraine’s defence against Russia. On March 4, an NFT of the Ukrainian flag raised US$6.75 million in crypto for the nation, proceeds of which were directed to the ‘Come Back Alive’ organisation which donates supplies to the families of soldiers and civilians.

Total crypto donations to Ukrainians have now surpassed US$108 million. Kraken exchange recently distributed over US$10 million in aid to Ukraine citizens with crypto wallets. The total donations are dispersed across relief efforts, charities, and government wallets.