Ukraine Eyes National Bitcoin Reserve As Crypto Regulations Take Shape

Ukrainian authorities are gearing up to introduce a National Bitcoin Reserve amid incoming local regulations. Crypto exchange Binance and other firms have backed the idea, citing a major shift in adoption. This follows the United States’ move to create a reserve and an anticipated price rally ahead. 

Ukraine Changing Crypto Landscape

According to local sources, Ukraine’s lawmaker Yaroslav Zhelezniak is working on a draft legislation for the reserve. Zhelezniak, the Deputy Chairman of the Finance, Tax and Customs Policy Committee, disclosed that the text is in the final stage, doubling down on his previous position. 

This year, the lawmakers hinted at a possible crypto reserve while working on wider digital asset regulation making it less stringent than European laws. He floated three options on a principal regulatory body: a new agency in charge of digital asset enforcement, or the National Bank and National Securities and Stock Market Commission (NSSMC). 

In April, the Verkhovna Rada’s Finance, Tax and Customs Policy Committee approved the draft on digital assets. However, the bill faced significant challenges, leading to a withdrawal from consideration. Talks of a Strategic Bitcoin Reserve are a huge leap considering the headwinds faced by the previous bill. 

Ukraine’s crypto future has divided several policy watchers, although the consensus remains its positive impact on users. On one hand, crypto enthusiasts are skeptical of the chances of full government-backed reserves. In contrast, others are more optimistic, citing evolving macro interest and the current White House stance.

Binance Throws Weight Behind Legislation

Leading crypto exchange by volume, Binance, and a slew of other digital asset firms have lauded Ukraine’s authorities for the draft legislation. Kiril Khomyakov, the Head of Binance in Central Asia, CEE, and Africa wrote that the exchange supports the idea of a strategic Bitcoin reserve.

“The creation of such a reserve will require significant changes in legislation, which indicates that this process will not be quick. Another positive aspect is that this initiative will likely lead to greater clarity in the regulation of crypto assets in Ukraine, as the government will need to more clearly articulate its position on this issue,” he added.

More countries introducing positive digital asset regulations pumped the latest institutional inflow into the market. The United States and other countries looking to spur accumulation have become a catalyst for crypto whales pitching a higher price. This further shrouds an added layer of legitimacy on the asset class.