Ukraine Prepares Europe’s First National Bitcoin Reserve in Collaboration with Binance
In a significant step toward embracing digital assets at the national level, Ukraine is reportedly drafting legislation to establish Europe’s first sovereign Bitcoin reserve. The move, if successful, could place the war-torn nation at the forefront of state-led crypto adoption, amid continued economic challenges and geopolitical instability.
The initiative is being spearheaded in cooperation with Binance, the world’s largest cryptocurrency exchange by trading volume. According to Ukrainian media reports, Member of Parliament Yaroslav Zhelezniak confirmed that a draft bill authorizing the creation of a national crypto reserve is nearing completion and will soon be submitted to the Verkhovna Rada, Ukraine’s parliament.
“We will soon submit a draft law from the industry allowing the creation of crypto reserves,” Zhelezniak told local reporters.
The proposal comes as Ukraine continues to navigate the financial toll of its prolonged conflict with Russia, now surpassing 1,170 days. Establishing a Bitcoin reserve is seen as part of a broader strategy to strengthen the country’s monetary resilience, protect against currency depreciation, and reduce reliance on traditional financial systems that may be vulnerable to external shocks.
Bitcoin, currently trading above $102,000, is often considered a hedge against inflation and fiat instability. Analysts speculate that sovereign accumulation could contribute to long-term price support for the asset.
Regulatory Challenges Remain
While the idea has gained momentum, the road to implementation is complex. A draft law on virtual assets previously cleared Ukraine’s finance committee but was withdrawn after pushback from the President’s Office and the National Securities and Stock Market Commission. Though the Commission denies blocking the proposal, it has reportedly submitted over 80 amendments for review.
Despite these hurdles, Ukraine aims to formally legalize cryptocurrency use by 2025. Future regulations are expected to address capital gains taxation, compliance with anti-money laundering (AML) standards, and provide greater clarity for both domestic and international crypto stakeholders.
Binance’s Expanding Role
Binance, which donated $10 million in humanitarian aid to Ukraine in 2022, has deepened its engagement with the country. Kirill Khomyakov, Binance’s Regional Head for Central and Eastern Europe, Central Asia, and Africa, noted that implementing a Bitcoin reserve would require substantial legal reform — but also presents an opportunity for more robust regulatory frameworks.
“This initiative will likely lead to greater clarity in the regulation of crypto assets in Ukraine,” Khomyakov said in a statement.
The Ukrainian effort is part of a broader trend. Binance has been actively supporting other nations exploring sovereign digital asset strategies. CEO Richard Teng recently indicated that multiple governments are in talks with the exchange to develop national crypto reserves. Some of these discussions were reportedly inspired by the U.S. executive order under President Trump calling for a federal Bitcoin reserve.
In neighboring regions, Binance has signed advisory agreements with Kyrgyzstan’s National Investment Agency and continues to play a role in shaping crypto policy in Pakistan, where founder Changpeng Zhao now serves as Strategic Advisor to the Pakistan Crypto Council.