The country could become the first European nation to launch a strategic Bitcoin reserve, with support from Binance.
According to a report by Incrypted, Ukraine is working on the creation of a strategic Bitcoin reserve. The news was announced by Yaroslav Zhelezniak, Vice Chairman of the Committee on Fiscal, Tax and Customs Policy. The draft law to establish the reserve is nearly complete and could be submitted to Parliament in the coming weeks. The goal is to grant the National Bank of Ukraine the legal authority to hold bitcoin and treat it as a reserve asset.
In recent years, Ukraine has shown openness toward digital assets. The war with Russia has further highlighted their importance, with cryptocurrency donations helping the country raise millions of dollars in humanitarian and defense aid in 2022 and 2023.
Now, the Ukrainian government is planning a comprehensive set of reforms that would allow cryptocurrencies to gain a foothold within the country’s regulatory framework. The Ministry of Digital Transformation is leading this effort. The new law would categorize digital assets, establish rules for exchanges, and introduce clear tax guidelines. If approved, the measure could come into effect as soon as possible.
Binance’s support
Kirill Khomyakov, Binance’s Regional Head for Central and Eastern Europe, Central Asia, and Africa, stated that the exchange will support Ukraine in creating its Bitcoin reserve.
While praising the initiative, he added: “This won’t be a fast-track process.” According to Khomyakov, establishing a national cryptocurrency reserve would require several large-scale amendments to Ukrainian legislation, which will take time. He also noted that current legislation does not allow for the holding and management of digital assets within official reserves.
Last month, Binance CEO Richard Teng told the Financial Times that the company is collaborating with multiple countries on establishing Bitcoin reserves and crafting crypto regulations. Previously, Binance co-founder and former CEO Changpeng Zhao had proposed that Kyrgyzstan and Pakistan develop a sovereign Bitcoin strategy.
Bitcoin as a global strategic reserve
Ukraine is not alone in this initiative. Other countries around the world have begun to consider Bitcoin as a strategic asset.
Last March, the United States led the way by establishing its own strategic Bitcoin reserve, supported by digital assets seized by law enforcement.
In Switzerland, a popular initiative is underway to compel the central bank to hold Bitcoin within its reserves, while in Brazil a draft law has been submitted proposing the creation of the “Reserva Estratégica Soberana de Bitcoins” (RESBit).