Crypto market under control: Ukraine has identified those responsible for virtual assets
28 March 22:38
In Ukraine, the cryptocurrency and virtual assets market will be regulated by two key bodies – the National Securities and Stock Market Commission (NSSMC) and the National Bank of Ukraine (NBU). This is reported by "Komersant Ukrainian" with reference to the information of the NSSMC.
Representatives of the regulator assure that such a division of powers is intended to ensure transparency, legality and security of operations with cryptocurrencies, as well as to prevent fraud and financial crimes.
Functions of the NSSMC
The National Securities and Stock Market Commission is responsible for regulating the market of virtual assets that do not fall under the category of electronic money. Its competence includes:
- Control over the issuance and circulation of tokens, in particular those linked to assets (Asset-Referenced Tokens, ART).
- Regulation of virtual asset service providers, such as crypto exchanges, crypto wallets, and other services.
- Protecting investors’ rights and ensuring market transparency.
- Preventing market abuse and countering manipulation.
- Licensing of companies operating in the field of virtual assets.
The NSSMC also cooperates with international regulators and financial organizations to comply with international standards in the field of cryptocurrencies.
Functions of the NBU
The National Bank of Ukraine focuses on the regulation of cryptocurrencies, which are classified as electronic money or Electronic Money Tokens (EMT). The main powers of the NBU include:
- Control over the issuance and circulation of EMTs – digital assets that are pegged to national currencies or other assets.
- Supervising the activities of issuers of such tokens.
- Regulation of exchange transactions between cryptocurrencies and traditional money.
- Ensuring financial stability by preventing risks associated with the use of cryptocurrencies.
The NBU is also actively exploring the possibility of launching its own digital currency, the electronic hryvnia (e-hryvnia), which will act as an official means of payment in the digital environment.
Cooperation between regulators
Regulators shall notify each other in a timely manner of observations and conclusions, and exchange information on state regulation and supervision necessary to fulfill their powers.
Regulators shall have the right to obtain information necessary for the exercise of their statutory powers from each other’s databases maintained for the purpose of state regulation and supervision of the virtual asset market.
Cooperation between regulators to ensure the protection of the rights of clients and owners of virtual assets, including the exchange of information on client complaints and violations in the virtual asset market.
Organizational and procedural issues of interaction between regulators are determined by the procedure for information interaction between the NSSMC and the NBU.
Cryptocurrency market and legal framework
The legal regulation of the cryptocurrency market in Ukraine is based on the Lawon Virtual Assets adopted in 2022. It defines the legal status of virtual assets, their circulation, as well as the rights and obligations of market participants. The law also ensures compliance with international financial monitoring standards, which helps prevent the use of cryptocurrencies for money laundering or terrorist financing.
The law provides for:
- Licensing of virtual asset market operators.
- Transparency requirements for cryptocurrency platforms.
- Protection of consumer and investor rights.
- Application of sanctions for violation of financial legislation.
Cooperation with international partners
Ukraine is actively cooperating with international financial institutions, including the International Monetary Fund (IMF) and the Financial Action Task Force on Money Laundering (FATF), to implement international standards in the field of cryptocurrency regulation. Such cooperation helps to strengthen the country’s financial security.
Development prospects
By the end of 2025, the legislation is expected to be further improved in line with the development of technology and the emergence of new financial instruments. Important areas will include:
- The launch of the e-hryvnia as a tool for digital payments.
- Strengthening the financial monitoring system to detect illegal transactions.
- Creating conditions for attracting investments in blockchain technologies and cryptocurrencies.
Read also: Cryptocurrencies may be legalized in Ukraine in early 2025. But there will be no benefits
What you need to know about the cryptocurrency market in Ukraine
The cryptocurrency market in Ukraine is actively developing, especially against the backdrop of global digitalization and the growing popularity of blockchain technologies. Ukraine is one of the countries with the highest rates of cryptocurrency adoption, and the state is gradually forming a legal framework for regulating this market.
In Ukraine, cryptocurrency is officially recognized as a virtual asset. Cryptocurrencies are not legal tender in Ukraine, but can be used as an asset for investment, value preservation, and private payments.
All companies that work with cryptocurrencies (exchanges, exchangers, crypto wallets, etc.) must obtain a license from the NSSMC. The licenses require compliance with financial monitoring, anti-money laundering (AML), and terrorist financing rules.
Virtual assets are subject to taxation in Ukraine. Individuals pay 18% income tax and 1.5% military duty when receiving income from the sale of cryptocurrency. Legal entities are subject to a general taxation system, depending on the type of activity.
The NBU is actively exploring the possibility of launching a digital hryvnia (e-hryvnia), a state digital currency that will be the official means of payment. The e-hryvnia could become a tool for quick payments, international transfers, and financial innovation.
Use of cryptocurrencies in Ukraine
Cryptocurrencies in Ukraine are widely used for investment, online trading, and transfers. During the war, cryptocurrencies became an important tool for raising donations to support the Armed Forces and humanitarian aid.
Many Ukrainians use stablecoins (cryptocurrencies pegged to the dollar or euro) as a hedge against inflation.
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