As is traditional, let's start with an explanation. The prospect of legalisation of cryptocurrencies in Ukraine has been talked about for quite a long time. In particular, back in October 2021, MPs proposed norms to regulate the sphere of digital assets.

At that time, draft law No. 3637 primarily introduced the concept of a "virtual asset" into the Ukrainian legal framework. It referred to "an aggregate of data in digital form which has value". Naturally, bitcoins, ethers and other coins fell under this definition.


The idea of preferential taxation on profit from cryptocurrency transactions seemed especially attractive. For companies the figure was proposed to be set at 5 per cent of income, while for an individual it was proposed to add an additional 5 per cent tax and 1.5 per cent as a military levy.

The figure is much lower than the 18 per cent of the country’s regular income tax. As explained by representatives of the Ministry of Digital Transformation when presenting the bill, this is how they want to bring the sector out of the shadows and attract foreign investment.

Buying cryptocurrencies


Still, the 5 percent tax for companies is many times lower than what is levied in Europe and other countries with an existing regulatory framework for the field. Therefore, we can easily assume that many companies will want to move their business to Ukraine - or set up and register it there.


VAT on crypto transactions was not envisaged. Deputies explained such a decision by the lack of production costs of the digital assets, the value of which is primarily formed by supply and demand. In addition, advanced global countries like the US, Canada and Japan also do not use this tax.

In the autumn of 2021, Vladimir Zelensky vetoed the law and sent it back for revision. The key complaint was that the crypto sphere was proposed to be regulated by a special new structure under the Ministry of Securities. The President of Ukraine, in his turn, suggested abandoning this idea and putting the regulation in the hands of the National Securities and Stock Market Commission. The situation is similar in the US and other leading countries.

Buying various cryptocurrencies

As a result, the document has now been signed, which means cryptocurrencies are already legal in Ukraine. Here’s what that means.

How cryptocurrencies are regulated in Ukraine

The information about the adoption of the bill was announced by the Minister of Digital Transformation Mikhail Fedorov in his Telegram Channel. Here is his rejoinder.

Let’s launch a legal market of virtual assets in Ukraine and bring the crypto sector out of the shadows.

Fedorov also voiced the key changes that await the country given the new bill.

Changes expected with the new law: foreign and Ukrainian crypto-exchanges will work legally; banks will open accounts for cryptocurrency companies; Ukrainians will be able to protect their investments in virtual assets; the state will guarantee judicial protection of rights for virtual assets.


Opening accounts for cryptocurrency companies in a bank will significantly simplify their work in the country. As a reminder, in 2021, some blockchain companies faced account closures, at times without even an explanation or prior notice.


Buying digital assets

Meanwhile, the National Securities and Exchange Commission will be able to shape and implement policy on virtual assets, determine the specifics of crypto circulation, share approvals for relevant service providers, and conduct financial monitoring within the digital asset niche.

As noted by Decrypt representatives, previously cryptocurrencies were not banned in Ukraine, but were in the so-called grey zone of regulation. At the same time, the adoption of this law does not imply making Bitcoin an official means of payment in Ukraine. Accordingly, for now, El Salvador remains the only state where it is possible to pay anything in BTC officially.

Buying cryptocurrencies with a card


We believe that the initiative of the Ukrainian authorities is worthy of recognition. They are now creating a great environment for crypto-businesses that want to operate completely legally and still pay relatively little tax. Apparently, this will be a good reason for new and existing companies to move into the country.