Ukraine to Establish Unique Bitcoin Reserves with Alleged Backing from Binance

Ukraine is in the process of drafting laws that would make it one of the first countries to officially incorporate Bitcoin into its national reserves.

Yaroslav Zhelezniak, a Member of Parliament, has publicly acknowledged that a bill is being developed to support this initiative.

As the First Deputy Chairman of the Committee on Finance, Tax, and Customs Policy, Zhelezniak indicated that the proposed legislation will be submitted soon, though its final wording is still under consideration.

The move to hold Bitcoin aligns with Ukraine’s broader trend of embracing digital assets. Recent reports place the nation among the top ten globally for cryptocurrency adoption, and public authorities collectively hold 46,351 BTC, which is estimated at roughly $5 billion.

This interest is bolstered by the fact that Ukraine has received substantial amounts in cryptocurrency donations since the onset of its conflict with Russia.

In addition to this, the government is working to officially recognize cryptocurrencies, which represents a significant advancement in its regulatory framework.

Moreover, a new tax system for digital assets is under discussion, with government officials contemplating a tax rate ranging from 5% to 10%. This plan aims to regulate the crypto market while bolstering national finances, especially for military and emergency needs.

Binance, the leading global cryptocurrency exchange, is assisting Ukraine in establishing a Bitcoin reserve.

Kirill Khomyakov, Binance’s regional head for Central and Eastern Europe, has stated that the exchange fully supports the establishment of a sovereign digital reserve.

Khomyakov pointed out that substantial legislative changes are necessary for the reserve to materialize, which could also help clarify Ukraine’s regulatory stance on cryptocurrencies.

Binance has not provided additional comments in response to inquiries regarding this development.

In addition to its collaboration with Ukraine, Binance is also discussing cryptocurrency adoption with nations like Kyrgyzstan, promoting digital finance education throughout the region.

This involvement reflects Binance’s increasing partnerships with governments around the globe. The CEO, Richard Teng, recently highlighted that various countries have sought the company’s expertise in creating crypto reserves and developing regulatory systems.