Country overview

#68
Ukraine

Country stats

Rating Points
207
This indicator describes the overall rating of a given jurisdiction on several parameters according to cryptocurrency operations - market volume, crypto regulation, business climate, taxation framework.
Crypto Penetration
10.3%
Estimated percentage of crypto users out of the country's total population based on public data.
Legal Entities
0
Number of crypto companies registered in the country based on regulator data if available or other types of public data.
Regulation Points
100
An overall assessment of the granularity of crypto regulation in a given country. A high score is also given to countries where cryptocurrency transactions are highly regulated.
Amount of crypto users
4 501 100
Total amount of crypto users out of the country's total population based on public data.
Taxation points
29
This figure, according to our analysts' calculations, indicates the overall level of tax burden for cryptocurrency transactions in a given country. The higher the indicator, the lower the burden.
Market volume points
118.4
A rough estimate of this jurisdiction's retail crypto market relative to the rest of the world. The higher the indicator, the higher the market potential.
Status of crypto
Legally allowed
General status of cryptocurrency regulation in this jurisdiction.
Crypto payments
No info
The legal status of cryptocurrency payments for goods and services in a given country based on information from regulators, public data and feedback from our community.
Security Level
Considerable danger
The overall level of security in a given country based on open data.
Crypto Salaries
No info
The legal status of cryptocurrency salaries to employers in a given country based on information from regulators, public data and feedback from our community.
Business Climate
Difficult
Overall assessment of the friendliness of this country for crypto-business. This indicator takes into account the cost of obtaining a license and the attitude towards crypto entities in the country.
Stablecoin Regulation
Low
This indicator is evaluating the regulation of stablecoins in a given country. Complex regulation means that it is possible to issue steiblcoins and obtain a license for this activity. Basic regulation means that the issuance of stablecoins is possible, but not all legal aspects are defined in the law. Standard regulation means that there is a legal practice of steylcoin circulation in a given country.
Bad Factors
No
This section describes the unfavorable economic factors for crypto-business in a given country. These are countries that are under sanctions or on the FATF grey list and other factors.
Types of licenses
Crypto-to-crypto
This license type allows VASP to provide legal exchange from one cryptocurrency to another.
Crypto-to-fiat
This type of license regulates the exchange from cryptocurrency to fiat.
Wallet/Custody
This country has a legal licensing procedure for companies that store cryptocurrency - - crypto wallet providers and custodians.
De facto
Cryptocurrency exchange is conditionally legal in this jurisdiction, but no licensing procedure is yet. Registering a legal entity here and performing exchange operations through it without a license is possible.
Good
Medium
Bad
intro

Ukraine has a robust crypto community, but bringing its regulation to Mica standards still needs to be completed.

Most Ukrainian blockchain companies operate outside the country, and the shadow sector is significant.

Security level

Ukraine has a considerably dangerous security level, according to our rating. Jurisdiction has 53.2 points (from 100) for safety level in Numbeo crime rating (1). Homicide level (2) is 3.8 per 100,000 inhabitants a year. Story of firearm-related death (3) 1.36 per 100,000 inhabitants a year.

Crypto Payments

Crypto payments are possible in Ukraine. It is a common practice(4) to buy goods and services for crypto, including marketplaces. Purchases are made through conversion into hryvnia. However, there have yet to be any legal mechanisms for crypto payments in the country.

Crypto Salaries

No data

Legal

On February 18, 2022, the Verkhovna Rada of Ukraine passed the law “About virtual assets”(5).

For the law "On Virtual Assets" to enter into force, the Verkhovna Rada of Ukraine must adopt amendments to the tax code (6). Currently, these amendments have yet to be adopted.

The NBU has been assigned to supervise the turnover of virtual assets backed by currency values. Other virtual assets, including those supported by securities or derivatives, will be supervised by the NCSSM.

It will also issue authorizations and control the activities of service providers related to the turnover of virtual assets. Subsequently, the authorities announced their intention to finalize the law (7). For this purpose, the NCSSM has created an advisory council (8).

The primary regulators are the National Bank of Ukraine (NBU) and the National Securities and Stock Market Commission of Ukraine (NSSMC)(9).

Taxation
Tax nameIndex
PIT tax Min18
PIT tax Max18
Corporate tax (CIT)18
Min Individual CGT (for crypto)18
Max Individual CGT (for crypto)18
Wealth tax Min0
Wealth tax Max0
PIT

Taxable income from abroad is subject to a tax rate of 18%. by PWC(10).

CIT

Based on PWC, Ukraine's standard CIT rate is 18% (11).

CGT

Capital gains are subject to the standard CIT rate of 18%, according to PWC (12).