Ukraine is preparing to launch the first national Bitcoin reserve in Europe, collaborating with Binance, the largest cryptocurrency exchange by trading volume.
This move places Kyiv at the forefront of state adoption of cryptocurrencies amid war and financial pressure.
Ukraine plans to create the first national Bitcoin reserve in Europe in collaboration with Binance.
Local media reported on a promising collaboration that marks a significant turn in Ukraine's monetary strategy.
It has been reported that MP Yaroslav Zheleznyak confirmed to the Ukrainian publication Incrypted that the draft law for the creation of a strategic Bitcoin reserve is in its final stages.
Zheleznyak, the first deputy chairman of the Committee on Finance, Taxation and Customs Policy, noted that the draft will soon be submitted to the Verkhovna Rada, which is the local term for the parliament of Ukraine.
"We will soon submit a draft law from the industry allowing for the creation of crypto reserves," reads a post in the report, quoting Zheleznyak.
This move comes on the 1,175th day of Ukraine's war with Russia. Thus, it reflects the urgent need for the country to protect its economy from instability caused by the war and broader geopolitical risks.
In particular, Ukraine is seeking financial tools to ensure stability amid currency depreciation and military fiscal volatility. Bitcoin was trading at $102,897, and analysts suggest that accumulation at the state level could exert new upward pressure on the price of the digital asset.
"The Ukrainian parliament is exploring the launch of a national strategic Bitcoin reserve with Binance. Very bullish sentiment," noted CryptoGoos, a digital asset enthusiast.
However, Ukraine's path is fraught with obstacles. Although the financial committee of the Verkhovna Rada approved a draft law on virtual assets in April, it was withdrawn. This move came after opposition from the Office of the President and the National Securities and Stock Market Commission.
The commission denied blocking the bill but instead submitted 80 amendments for consideration.
However, Ukraine aims to formally legalize crypto activity by 2025. Legislation is expected to cover capital gains taxation and anti-money laundering standards.
If the law is passed, the Bitcoin reserve could accelerate this timeline and help solidify the country's status as a crypto-oriented state amid global trends of de-dollarization.
Binance supports Ukraine's cryptocurrency ambitions amid global expansion.
Binance supports Ukraine's ambitions. However, the exchange acknowledges that the inevitable change in Ukraine's approach to digital assets will require legislative adjustments.
"Creating such a reserve will require significant legislative changes... Another positive aspect is that this initiative is likely to lead to greater clarity in the regulation of crypto assets in Ukraine," the report quotes Kirill Khomyakov, the regional head of Binance for CEE, Central Asia, and Africa.
BeInCrypto reached out to Binance for a comment, but we have not yet received a response.
This indicates that the process will take time before Ukraine has a national Bitcoin reserve, as the government must clearly articulate its position on the matter.
Meanwhile, this collaboration deepens Binance's relationship with Ukraine, following humanitarian aid worth $10 million in 2022. It also places Ukraine alongside a growing number of states exploring Bitcoin as a strategic reserve asset.
Among others are Russia, the USA, and the Czech Republic. Meanwhile, others, such as Ireland, have not announced initiatives regarding institutional crypto reserves, but their supporters have expressed this idea.
The proposal for a Ukrainian Bitcoin reserve aligns with Binance's global push to support state adoption of cryptocurrencies. CEO Richard Teng recently revealed that several countries are working with the exchange to create similar reserves.
They draw inspiration from a recent executive order by the USA regarding a national Bitcoin reserve under President Trump.
In addition to Ukraine, Binance has established ties with the governments of Central and South Asia. In Kyrgyzstan, the exchange signed a broad agreement with the National Investment Agency to consult on blockchain implementation, stablecoins, and digital payments.
Binance founder and former CEO Changpeng Zhao (CZ) has been appointed as a strategic advisor to the Pakistan Crypto Council. In this role, he is shaping the country's crypto infrastructure and policy.
As Binance continues to deepen state-level ties, Ukraine's bold experiment may serve as a model for how developing countries counter economic uncertainty using digital tools.