Ukraine is reportedly preparing legislation to become one of the first countries to officially hold Bitcoin in the national reserve.
According to Ukrainian media outlets Incap tapCongressional Rep. Jaroslav Zhelezniak confirmed that draft laws are being developed to support the initiative.
Zhelezniak, the first vice-chairman of the Committee on Finance, Tax and Customs Policy, also revealed plans to bring the bill up soon. However, the final language is still under review.
Ukraine’s interest in holding Bitcoin is because the country adopts digital assets more widely. The 2024 Chain Melting Report ranks countries among the top 10 global crypto adoption. Similarly, data from Bitcoin Treasuries show that national civil servants collectively hold 46,351 BTC, which is worth around $5 billion.
These figures are not surprising given that Ukraine has received millions of dollars in crypto donations since the start of the conflict with Russia.
Additionally, the government has taken steps to formalize the legal status of cryptocurrencies within its jurisdiction, marking an important milestone in its regulatory approach.
Additionally, the country is considering a new tax framework for crypto. Authorities are valuing tax rates of 5% to 10% on digital assets, aiming to regulate the market and support the country’s budget, particularly military and emergency costs.
The role of vinanence in Ukraine’s Bitcoin reserve plan
According to the report, Binance, the world’s largest crypto exchange by volume, advises Ukraine on its efforts to create a Bitcoin reserve.
Kirill Khomyakov, the company’s regional director in Central and Eastern Europe, is reportedly supporting Binance’s initiative to establish a sovereign digital reserve.
Khomyakov emphasized that important legislative updates will be required before preparations become a reality. However, he also said the process will help clarify Ukraine’s stance on crypto regulations as the government needs to define its policies more accurately.
Binance hasn’t responded yet Encryption Request for additional commentary.
Beyond Ukraine, Binance is engaged in similar conversations to countries like Kyrgyzstan, and also promotes the adoption of encryption and promotion of digital finance education across the region.
This approach confirms an increase in Binance’s involvement with governments around the world. Exchange CEO Richard Teng said recently that several countries have consulted the company about building cryptographic reserves and developing regulatory frameworks.