With the development of the digital economy and the spread of cryptocurrencies in Ukraine, the issue of their legal regulation is becoming relevant. The state is taking steps to create a legal framework that will ensure the protection of investors, the fight against financial crime and the development of the crypto industry in the legal sphere.
Legislative regulation
In 2022, the Verkhovna Rada adopted the Law of Ukraine “On Virtual Assets”, which defines the legal status, classification and basic principles of circulation of cryptocurrencies in the country. The main provisions of the law:
- Cryptocurrency is recognized as a virtual asset that can be an object of civil rights.
- State regulation is carried out by the National Securities and Stock Market Commission (NSSMC).
- Transactions with cryptocurrencies are subject to financial monitoring in accordance with anti-money laundering legislation.
- A licensing system for crypto platforms and virtual asset providers has been implemented.
However, as of February 2025, the said law has not entered into force, so cryptocurrencies remain outside the scope of legal regulation in Ukraine. This does not mean that owning cryptocurrencies in Ukraine is prohibited, recognized as illegal, or that cryptocurrencies are subject to confiscation. But at the same time, any actions with cryptocurrencies, reporting on them, remain unprotected by law.
Taxation of cryptocurrencies
Currently, there is no special tax regime for cryptocurrencies in Ukraine. Profits from cryptocurrency trading are subject to taxation in the general manner, with the only difference that, due to the lack of proper regulation, an investor, with rare exceptions, can prove his investment expenses when buying cryptocurrency, and therefore the entire amount of income is recognised as taxable profit without deduction of investment expenses. This issue is also subject to regulation at the legislative level.
The application of a special tax regime for crypto businesses in the future is still under discussion.
Registration and activities of crypto companies
Since the Law of Ukraine “On Virtual Assets” has not entered into force, and the activities of crypto market participants remain unregulated. Therefore, it is impossible to obtain a license to work with crypto assets. The legal basis on which crypto exchanges, exchangers and custodians will operate is a separate issue, as are the licences they will receive. In any case, the regulator in this area will be the National Securities and Stock Market Commission, which will determine the main conditions of activity on the Ukrainian crypto market.
Development prospects
Developments in EU legislation in the area of crypto-asset regulation (e.g. Regulation, The Second Directive of the European Union “On the Markets in Financial Instruments” (MiFID II)), the spread of cryptocurrency use in public life, as well as the large concentration of IT companies in Ukraine are actively pushing for the earliest possible legislative regulation of the cryptocurrency market. With a high degree of probability, we can expect the adoption of licensing rules similar to the European MiCa , which we wrote about in the article at the link. At the same time, due to the non-transparent use of cryptocurrencies, the state will at some point be forced to take measures to combat money laundering and financial monitoring (you can read about AML at the link) on the crypto market, as far as possible.
Simultaneously with the regulation of the cryptocurrency market and the introduction of financial supervision rules for this market, smart contracts will need to be regulated and cryptocurrencies themselves will most likely be integrated into the Ukrainian financial system.
Zilver Law Firm provides professional advice on the legal aspects of working with cryptocurrencies in Ukraine. We will help you understand the current legislation, prepare the necessary documents and minimise the legal risks of running a crypto business.
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