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Ukranian president Volodymyr Zelensky has signed into law a bill called “On Virtual Assets” that provides the legal grounds for the operations and management of a regulated crypto market in the country.

As announced by the Ukranian government, its National Securities and Stock Market Commission will be responsible for setting policies and developing guidelines for virtual assets. Crypto service providers and exchanges will be permitted to operate lawfully, and banks can set up accounts for them to facilitate their operations.

At a time where the country faces invasion, Ukrain recieved donations in crypto totaling $100M from accross the globe to aid in its defences and relief efforts amidst the war against Russia.

Becoming a major conduit for donations to Ukraine as well as being viewed as a potential haven for the Russians who are facing financial sanctions, cryptocurrency appears to be serving a substantial role in the war between these countries. Although the necessary exchanging of virtual assets for the government-backed currency so as to make purchases poses as a challenge, the legalization of the cryptocurrency industry may alleviate a number of these issues.

Cryptocurrency exchange FTX saw its valuation swell to $32 billion in a new funding round announced Monday, highlighting continued appetite for the sector even as investors grow wary about a sharp pullback in crypto prices.

The Bahamas-based company said Monday that it raised $400 million in a Series C financing round — its third fundraise in the last nine months.

FTX, which offers derivatives products as well as spot trading, is one of the world’s largest digital currency exchanges. Once an obscure name, the firm has become a key player in the nascent market, rivaling the likes of Coinbase and Binance.

The company doesn’t offer trading in the United States. That function is provided by FTX U.S., its sister exchange. Last week, FTX U.S. announced a $400 million investment valuing the firm at $8 billion.

Having now raised a combined $2 billion in venture funding to date, FTX has built up a war chest at a time when digital currency prices have sunk considerably. Bitcoin is down 46% from its November record of almost $69,000, while other cryptocurrencies have slumped even further.

That’s led to fears the market may be on the cusp of a more severe downturn known as “crypto winter.” The last such occurrence happened in late 2017 and early 2018, when bitcoin tanked as much as 80% from its then-record high. Bear markets are typically bad news for crypto exchanges as it means volumes tend to dry up.

“I think we’re not entering a long term crypto winter,” Sam Bankman-Fried, FTX’s CEO and co-founder, told CNBC in an interview.
“There have been changes in expectations of interest rates, and that’s been moving crypto markets. But it’s been moving markets more generally as well.”

A large focus for FTX, Bankman-Fried said, is acquiring licenses in several countries. Its U.S. arm is now authorized to sell derivatives products such as futures and options, which allow investors to speculate on movements in the price of an asset. Bankman-Fried said FTX’s international business will be licensed across “the bulk of the Western world” by the end of this year.

~CNBC

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