Ukrainian parliament is one step away from legalising cryptocurrencies in Ukraine. Bill No. 10225-d, which MPs passed in the first reading in the autumn, is intended to introduce clear tax and legal rules for the circulation of virtual assets. Entrepreneur and fintech investor Artsiom Liashanau believes this decision is long overdue. According to him, the crypto market has existed in Ukraine for years, but the state hasn't yet officially recognised it for various reasons. In his column, he explains how this process is happening around the world and why it is high time to implement it in Ukraine.
The draft law defines for the first time what virtual assets are, how they are classified, accounted for and taxed. It also introduces requirements for crypto providers and establishes a transition period for market adaptation.
Ukraine consistently ranks among the top 10 countries in the world in terms of crypto activity, according to Chainalysis data.
"Why do I believe this step was long overdue? Because crypto in Ukraine isn't the future we are waiting for, but the present we are living in... Hundreds of thousands of Ukrainians already use cryptocurrencies, but they do so in a 'wild west' mode on the global market – without clear rules and protection...", Liashanau Artsiom explains.
One of the key document's points is the introduction of taxation on profits from transactions with crypto assets: 18% income tax and 5% military tax. Experts estimate the potential budget revenue at 14-15 billion UAH per year.
For a country at war and with a stable budget deficit, this isn't just a new source of income, but part of economic stability. Liashanau believes taxes on crypto aren't a penalty for new technologies, but a way to make them part of the official economy.
"This may not seem like much in terms of the budget, but in the event of a delay, the absence of this money could be considered a loss.", notes Artsiom Liashanau.
The law also provides for the possibility of amnesty – the legalisation of existing crypto assets without penalties. This could be an incentive for businesses and users to voluntarily come out of the shadows. However, the success of the mechanism will depend on how flexible the state is in its implementation and whether there will be dialogue with the market on these issues.
Liashanau cites existing regulatory standards for digital assets in the USA, the UK, and Japan (which is far from a complete list of global practices – editorial note) and points no law is final, and even the first draft is better than no rules or regulations at all.
"Today, users and businesses operate in a gray area: some declare their income, some do not, and some don't even understand what their tax obligations are. This creates opportunities for abuse and fraud. The law provides legal protection and clear rules, while also opening the door for banks, payment services, and operators to legally cooperate with the crypto industry", says Artsiom Liashanau.
If everything is implemented correctly, banks and payment services will be able to officially cooperate with crypto providers. This will open up new opportunities for Ukrainian fintech, from legal exchanges to integrated crypto payments in business.
According to the expert, the real effect of the law will only be felt when the goal of state control is regulation and compliance with the law, rather than complete control.
Artsiom Liashanau is convinced: "The market will change without regulation – and it's only in our power to ensure that Ukraine derives maximum benefit from these changes".
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