Ukraine Prepares National Bitcoin Reserve with Support from Binance

• Ukraine Plans to Create Strategic Bitcoin Reserve
• Binance collaborates with Ukrainian government on crypto legislation
• Cryptocurrency legalization expected in the first quarter

Ukraine is in the final stages of drafting a bill which aims to establish a national Bitcoin reserve, according to information confirmed by Yaroslav Zhelezniak, parliamentarian and vice-chairman of the country's Financial, Tax and Customs Policy Committee.

The proposal is supported by cryptocurrency exchange Binance, which has been working with local authorities to develop the necessary regulatory framework. While the exact scope of the partnership has not been revealed, it is known that the company has been assisting other governments and sovereign wealth funds interested in implementing cryptocurrency-related policies.

Richard Teng, CEO of Binance, stated recently told the Financial Times that the exchange is in talks with several countries to help form strategic Bitcoin reserves, in line with the pro-crypto policies of nations such as the United States.

In addition to Ukraine, Binance has been in talks with governments such as Pakistan and Kyrgyzstan. In Pakistan, Binance co-founder Changpeng Zhao (CZ) serves as a strategic advisor to the Pakistan Crypto Council, contributing guidelines on cryptocurrency regulation, education, and infrastructure. In Kyrgyzstan, CZ has even recommended that Bitcoin and Binance Coin be included in the national reserves.

Ukraine’s move is part of a broader effort to establish a clear legal framework for digital assets. A working group, in partnership with the National Bank of Ukraine and the IMF, is finalizing a draft law that would legalize cryptocurrencies by the first quarter of 2025.

This legal framework should include tax rules for crypto asset transactions and anti-money laundering measures. Profits from crypto assets should be taxed when converted to fiat currencies.

An earlier version of the legislation made its way through parliament, but was withdrawn after objections from the Office of the President and the National Securities Commission. The new version seeks to overcome these objections and move forward with regulating the sector in the country.