Ukraine Is Preparing to Launch Europe's First National Bitcoin Reserve, Reportedly Working with Binance

Local media reported on the prospective collaboration, which marks a significant pivot in Ukraine's monetary strategy.

Kyiv is reportedly preparing to launch Europe’s first national Bitcoin (BTC) reserve, working in cooperation with Binance, the largest crypto exchange by trading volume metrics.

The move positions the Eastern European nation at the forefront of state-level crypto adoption amid ongoing warfare and financial pressure.

Earlier this week, local media reported on the prospective collaboration, which marks a significant pivot in Ukraine’s monetary strategy.

Those reports were later corroborated by Member of Parliament Yaroslav Zhelezniak, who told Ukrainian outlet Incrypted that a draft law establishing a strategic Bitcoin reserve is in its final stages.

Zhelezniak, the First Deputy Chairman of the Finance, Tax, and Customs Policy Committee, noted that the draft would soon be submitted to the Verkhovna Rada, the local term for Ukraine’s parliament.

“We will soon submit a draft law from the industry allowing the creation of crypto reserves,” an excerpt from the report read, which cited Zhelezniak.

The move comes as Ukraine’s war with Russia enters its 1,175th day.

This consideration signals the country’s urgent need to insulate its economy from ongoing war-induced instability and broader geopolitical risk.

Specifically, Ukraine seeks financial tools to offer stability in the face of currency depreciation and wartime fiscal volatility.

Bitcoin was trading at $102,897 at the time of writing, with analysts suggesting that a sovereign-level accumulation could spark renewed upward pressure on the digital asset’s price.

“Ukraine parliament exploring national strategic Bitcoin launch with Binance. Very bullish,” remarked CryptoGoos, a digital assets enthusiast.

However, Ukraine’s path is littered with obstacles.

Although the Verkhovna Rada’s finance committee approved a draft law on virtual assets in April, they withdrew it following opposition from the President’s Office and the National Securities and Stock Market Commission.

The Commission has denied blocking the bill, instead submitting 80 amendments for the bill.

Still, Ukraine aims to legalize crypto activity formally in 2025. The legislation is expected to cover capital gains taxation and Anti-Money Laundering (AML) standards.

If enacted, the Bitcoin reserve could accelerate this timeline and help cement the country’s status as a crypto-forward state amid global de-dollarization trends.

Binance Supports Ukraine’s Crypto Ambitions Amid Global Expansion

Binance is said to be supporting Ukraine’s ambitions. But the exchange acknowledges that the imminent shift in Ukraine’s approach to digital assets would require legislative adjustments.

“The creation of such a reserve will require significant changes in legislation… Another positive aspect is that this initiative will likely lead to greater clarity in the regulation of crypto assets in Ukraine,” the report read, further citing Binance’s Regional Head for CEE, Central Asia, and Africa, Kirill Khomyakov.

BeInCrypto has reached out to Binance for comment.

This suggests that the process will take time before Ukraine has a national Bitcoin reserve, as the government will need to articulate its position on this issue clearly.

Meanwhile, this collaboration deepens Binance’s relationship with Ukraine, following its $10 million humanitarian aid donation in 2022. It also positions Ukraine alongside a growing cohort of states exploring Bitcoin as a strategic reserve asset.

Others include Russia, the US, and the Czech Republic. Meanwhile, others like Ireland have yet to announce institutional crypto reserve initiatives, but their advocates have floated the idea.

The Ukrainian Bitcoin reserve proposal aligns with Binance’s broader push to support sovereign crypto adoption.

Earlier this year, CEO Richard Teng revealed that several countries are currently working with the exchange on establishing similar reserves. They are also drawing inspiration from the US’s recent executive order on a national Bitcoin reserve under President Trump.

Beyond Ukraine, Binance has been forging ties with governments across Central and South Asia.

In Kyrgyzstan, the exchange signed a wide-ranging agreement with the National Investment Agency to advise on the implementation of blockchain technology, stablecoins, and digital payments.

Binance founder and former CEO Changpeng Zhao (CZ) was also appointed Strategic Advisor to the Pakistan Crypto Council. In this role, he will be involved in shaping the country’s crypto infrastructure and policy.

As Binance continues to deepen its ties with state-level officials, Ukraine’s experiment may become a blueprint for how emerging economies counter economic uncertainty with digital tools.