Fintech expert Olena Sosedka spoke about the economic potential after the legalization of cryptocurrencies in Ukraine

In recent years, Ukraine has shown significant interest in integrating cryptocurrencies into its financial system. However, despite the law "On Virtual Assets" adopted in February 2022, its full entry into force has been delayed due to the lack of corresponding changes in the Tax Code. As a result, as of March 2025, the legal status of cryptocurrencies in the country remains undefined, which creates obstacles for their full use and the development of the virtual asset market.

Details

UNN spoke with Olena Sosedka, a fintech expert and co-founder of Ukraine's first fintech ecosystem, Concord Fintech Solutions, about the importance of legalizing cryptocurrencies in Ukraine.

Olha Vasylevska-Smagliuk, Head of the Subcommittee on the Functioning of Payment and Information Systems and Prevention of Money Laundering, announced that the Verkhovna Rada plans to adopt a bill on the taxation of crypto assets by the end of this year. This will allow tracking cryptocurrency transactions, in accordance with European regulations.

Global practice of cryptocurrency regulation

"The experience of countries that have implemented clear and transparent rules for cryptocurrency regulation demonstrates a positive impact on investment attractiveness and the development of innovative technologies," said Olena Sosedka.

As an example, the expert cites the European Union, where the Regulation on Markets in Crypto-Assets (MiCA) came into force in December 2024. It establishes uniform requirements for cryptocurrency issuers and providers of such services. In the US, despite fragmented regulation, cryptocurrencies are classified as either commodities or securities, which provides some legal clarity.

According to Olena Sosedka, the lack of clear legislation in Ukraine in the field of virtual assets leads to a number of negative consequences. The first is legal uncertainty. After all, companies and investors face the absence of clear rules, which ultimately hinders market development.

No less important consequence is the lack of protection of rights. "Currently, cryptocurrency users in Ukraine remain without mechanisms to protect against fraud," explained Olena Sosedka.

She added that due to the lack of legal regulation, the state loses economic opportunities, as the inflow of investments and the development of fintech startups are currently limited in Ukraine.

Economic potential from the legalization of the cryptocurrency market

According to estimates by the Ministry of Digital Transformation, Ukraine generates about 2.5% of the world's cryptocurrency traffic.

"If cryptocurrency had been legalized in 2021, then for 2021-2024, the state could have received about UAH 8.34 billion in taxes from crypto exchanges registered in Ukraine and up to UAH 6.53 billion from taxing citizens' incomes. Even with a reduction of these estimates, for example, by 30%, the country's budget could have been additionally replenished by UAH 10.41 billion," believes Olena Sosedka.

In addition, according to her, the legalization of cryptocurrencies will create favorable conditions for attracting foreign investments in the IT sector and fintech startups. This, in turn, will create new jobs, increase the country's competitiveness, and provide citizens with access to new financial instruments.

The fintech expert notes that the adoption of the law on cryptocurrencies will also allow for the development of innovations, in particular, legalization will contribute to the development of blockchain technologies and the fintech sector.

"Official recognition of cryptocurrencies will allow the state to receive additional income, and regulation will provide mechanisms to protect users from fraud," added Olena Sosedka.

Thus, according to her, the adoption of the law on cryptocurrencies is an important step for Ukraine on the path to integration into the global digital economy. International experience shows that clear regulation contributes to market development, attracting investments, and protecting the rights of its participants. The fintech expert is confident that Ukraine should accelerate the process of adopting relevant legislation in order not to miss the opportunities provided by the digital financial sphere.

  Addition

In February, it was reported that virtual currency would soon be legal in Ukraine. Ruslan Magomedov, Head of the National Securities and Stock Market Commission, told a UNN correspondent that the bill has been sufficiently developed and can and should be adopted by Verkhovna Rada deputies. The goal of legalization is to launch the virtual asset market.

  Recall

UNN has prepared a series of publications in which it discussed digital currencies and their capabilities.

Our first material was dedicated to the technology underlying cryptocurrency - blockchain: "Crypto for Dummies". Part 1: What is blockchain and its "features" that few people know about.

The second material - Bitcoin halving: "Crypto for Dummies". Part 2: What is halving, and why does it cause a stir in the cryptocurrency market.

Third material: "Crypto for Dummies". Part 3: a step-by-step guide on how to buy a cryptocoin.

Fourth material: "Crypto for Dummies". Part 4: What are coins and tokens and what are their differences.

Fifth material: "Crypto for Dummies". Part 5. Cold and hot wallets.

Sixth material: Crypto for Dummies. Part 6. Security when using cryptocurrency exchanges and exchangers.