Fintech expert Elena Sosedka spoke about the potential for the economy 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 implementation is 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 uncertain, creating obstacles for their full use and the development of the virtual asset market. On the importance of legalizing cryptocurrencies in Ukraine, UNN spoke with fintech expert and co-founder of the first fintech ecosystem in Ukraine, Concord Fintech Solutions, Elena Sosedka.

The head of the subcommittee on the functioning of payment and information systems and preventing the legalization (laundering) of proceeds from crime, Olga Vasilevskaya-Smaglyuk, reported 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 practices in 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 Elena 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 service providers. In the USA, despite fragmented regulation, cryptocurrencies are classified either as commodities or as securities, which provides a certain legal clarity.

According to Elena Sosedka, the lack of clear legislation in Ukraine regarding virtual assets leads to a number of negative consequences. The first is legal uncertainty. Companies and investors face a lack of clear rules, which ultimately hinders market development.

Equally important is the lack of rights protection. “Currently, cryptocurrency users in Ukraine are left without mechanisms to protect against fraud,” explained Elena Sosedka.

She added that due to the absence of legal regulation, the state is losing 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 marketAccording to the Ministry of Digital Transformation, Ukraine generates about 2.5% of the world’s cryptocurrency traffic. 

“If cryptocurrency had been legalized in 2021, then from 2021 to 2024, the state could have received about 8.34 billion UAH in taxes from registered cryptocurrency exchanges in Ukraine and up to 6.53 billion UAH 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 10.41 billion UAH,” believes Elena Sosedka.

Moreover, 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 cryptocurrency law will also foster innovation, particularly, legalization will contribute to the development of blockchain technologies and the fintech sector.

“Official recognition of cryptocurrencies will allow the state to receive additional revenues, and regulation will provide mechanisms to protect users from fraud,” added Elena Sosedka.

Thus, according to her, the adoption of the cryptocurrency law is an important step for Ukraine on the path to integration into the global digital economy. International experience shows that clear regulation promotes market development, attracts investments, and protects the rights of its participants. The fintech expert is confident that Ukraine should accelerate the process of adopting the relevant legislation to seize the opportunities provided by the digital financial sphere.

Supplement

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

Recall

UNN has prepared a series of publications discussing digital currencies and their possibilities.

Our first material was dedicated to the technology underlying cryptocurrency – blockchain: “Cryptocurrency for Dummies”. Part 1: What is blockchain and its “features” that few people know about.

The second material – on Bitcoin halving: “Cryptocurrency for Dummies”. Part 2: What is halving, and why does it cause a stir in the cryptocurrency market.

The third material: “Cryptocurrency for Dummies”. Part 3: step-by-step guide on how to buy a cryptocurrency.

The fourth material: “Cryptocurrency for Dummies”. Part 4: What are coins and tokens and what are their differences.

The fifth material: “Cryptocurrency for Dummies”. Part 5. Cold and hot wallets.

The sixth material: Cryptocurrency for Dummies. Part 6. Security when using cryptocurrency exchanges and exchangers.