Ukraine

Regulatory data is for informational purposes only and may not reflect the most current legal developments. Always consult qualified professionals before making decisions.

Legal Classification & Regulatory Framework

Cryptocurrency Status

Ukraine adopted Law No. 2074-IX “On Virtual Assets” in February 2022, signed by President Zelensky the following month. The law classifies cryptocurrencies as “virtual assets,” defined as a type of digital thing created, stored, and transferred using distributed ledger or similar technology. Virtual assets are treated as intangible property rather than legal tender and cannot be used for payments within the country.

Subsequent legislation, specifically Draft Law No. 10225-d, introduces three MiCA-aligned categories: asset-referenced tokens, e-money tokens, and other virtual assets. Unsecured cryptocurrencies such as Bitcoin and Ethereum fall under the jurisdiction of the National Securities and Stock Market Commission (NSSMC), while assets with currency values are regulated by the National Bank of Ukraine (NBU). It is important to note that the full legislative framework remains conditional on the passage of Tax Code amendments, which were adopted at first reading by the Verkhovna Rada in September 2025.

Tax Treatment

Draft Law No. 10225-d introduces a dedicated tax framework for virtual assets. The standard rate for individuals is 18% personal income tax plus 5% military levy, totaling 23% on profits calculated as sales price minus acquisition cost. A transitional rate of 10% (5% PIT plus 5% military levy) applies to virtual assets acquired before the law takes effect, if sold during the first year. Mining and staking income benefits from a reduced rate on first conversion to fiat currency.

Several exemptions ease the tax burden: crypto-to-crypto exchanges are not taxable events, annual sales below the minimum wage threshold are exempt, and losses from virtual asset transactions can be carried forward to offset future profits. VAT is exempt for the issuance, placement, sale, exchange, and redemption of virtual assets, though NFTs and consulting services do not qualify. VASPs are required to register with tax authorities and submit annual transaction reports for Ukrainian residents.

Regulatory Oversight

Ukraine employs a dual-regulator model. The NSSMC serves as the primary regulator for the virtual assets market, issuing permits for regulated activities, enforcing compliance, and maintaining a register of approved platforms. The NBU regulates virtual assets with currency values and sets authorization rules for services exchanging virtual assets for currency. The Ministry of Digital Transformation has been assigned supervisory powers over VASPs for AML/CFT purposes under the broader anti-money laundering framework.

Business Environment

Banking Relationships

Ukrainian banks have historically been cautious with cryptocurrency transactions, frequently blocking transactions flagged as suspicious due to the absence of clear regulatory guidance. The new legislative framework, once fully enacted, is designed to allow banks to open accounts for licensed crypto companies and enable both foreign and domestic exchanges to operate with proper banking access. The NBU has positioned its approach as “crypto-compliant, not crypto-restrictive.”

The NBU is also developing the e-hryvnia, a central bank digital currency designed to complement cash and bank deposits. Pilot testing with real users in an open payment environment has been planned, with the central bank in the final stages of selecting a private partner for the pilot technology.

Licensing Requirements

Under Law 2074-IX, VASPs must obtain permits from the NSSMC for four categories of regulated activities: storage and administration of virtual assets or keys, exchange services (VA-to-VA or VA-to-fiat), transfer services, and intermediary services. The NSSMC must issue decisions within 30 days of application, and permits are valid for one year.

Resident companies face lower fees and capital requirements than non-residents. Minimum capital requirements range from EUR 12,500 to EUR 25,000 for resident VASPs and EUR 62,000 to EUR 125,000 for non-residents. Non-resident permit fees are approximately five times higher than resident fees. Applicants must demonstrate adequate capital, technical infrastructure, and internal AML/KYC policies. Providers connected to aggressor or occupying states are prohibited from obtaining licenses.

Innovation Support

Ukraine launched a regulatory sandbox for AI and blockchain startups in late 2024 under Cabinet Resolution No. 1238. The program, managed by the Ministry of Digital Transformation and the Ukrainian Startup Fund, provides compliance support, security testing, legal and technical assistance, and patent analysis. It runs through October 2026, with the government committing to propose legislative improvements based on outcomes.

The Diia.City special legal regime, operational since 2022, offers significant tax incentives for IT companies including crypto and blockchain businesses. Participants benefit from a reduced personal income tax rate of 5% for employees and a corporate rate of 9% on qualifying transactions, compared to the standard 18%. The program has attracted over 1,700 companies and more than 104,000 employees. Ukraine’s Diia platform, with over 20 million users, is exploring Web3 integration through the Diia.Engine project, and a blockchain estate registry prototype has been developed on Internet Computer Protocol and Polygon.

Market Characteristics

Adoption Patterns

Ukraine ranks among the top ten countries globally for cryptocurrency adoption and first in Eastern Europe on a per capita basis. Approximately 6.5 million Ukrainians, representing 15-16% of the population, own some form of cryptocurrency. The conflict that began in 2022 significantly accelerated adoption, as citizens turned to crypto for remittances, capital preservation, and cross-border transactions during wartime disruptions to traditional financial infrastructure.

The government’s own embrace of cryptocurrency was notable: within days of the conflict’s escalation, Ukraine posted official crypto donation wallet addresses and received approximately $225 million in cryptocurrency plus $190,000 in NFTs. The majority arrived in USDT and Ethereum, with funds used for humanitarian and military purposes including protective equipment and drones.

Industry Focus

Ukraine’s crypto ecosystem builds on the country’s strong IT sector, which has long been a source of blockchain developers and technical talent. The Diia.City regime specifically attracts blockchain companies with its favorable tax treatment. Key areas of activity include exchange services, blockchain development, DeFi applications, and government technology integration. The blockchain estate registry project demonstrates ambition to apply distributed ledger technology to public administration and property records.

Regulatory Evolution

Ukraine’s regulatory trajectory is closely linked to its EU candidacy, received in June 2022. Both Law 2074-IX and Draft Law 10225-d are explicitly designed to align with the EU’s Markets in Crypto-Assets Regulation (MiCA). VASP reporting obligations are being structured to comply with the OECD Crypto-Asset Reporting Framework (CARF) and the EU DAC8 Directive on automatic exchange of crypto tax information. The regulatory sandbox helps blockchain startups prepare for MiCA conformity.

As a MONEYVAL member, Ukraine has undergone AML/CFT evaluation, with its virtual assets rating noted as an area requiring improvement. The AML/CFT framework has been extended to cover virtual assets and VASPs, requiring customer due diligence, record-keeping, suspicious transaction reporting, and compliance with targeted financial sanctions. The wartime context has both accelerated legislative ambition and delayed implementation, as legislative bandwidth has been consumed by conflict priorities.

For Current Information:

• National Securities and Stock Market Commission (NSSMC)
• National Bank of Ukraine (NBU)
• Ministry of Digital Transformation of Ukraine
• Diia Platform
• FATF – Ukraine Country Profile