Cryptocurrency in Ukraine

Can Ukraine turn the economic turmoil into a growth opportunity in 2025? The answer is yes. Ukraine is soon going to legalize cryptocurrency trading by building new laws and a regulatory framework.

In past years, Ukraine has seen a major downfall in its economy—be it the high inflation, which reached 26.6% in 2022, or the Ukraine-Russia war. Historic events led the Hryvnia, the national currency of Ukraine, to lose its value in the global market, which made Ukraine's population seek different types of investment through cryptocurrency.

In 2023 during the war, Ukraine was funded over $225 million through cryptocurrency. This started the trend of adopting cryptocurrency in Ukraine, which can generate a revenue of US$149.5m by 2025.

Crypto Adoption in Ukraine

As of March 2025, Ukraine has passed cryptocurrency as the “Law of Virtual Assets” where users can trade, hold, and make certain transactions like remittances through cryptocurrency. However there is still a lack of crypto regulations that the government is trying to fill with a transparent and updated framework.

According to the Chainalysis Adoption Index, Ukraine ranks at the sixth position in global crypto adopters. Around 16% of the population—6.5 million users—owned cryptocurrency in 2023. The Ukrainian government did not make crypto a legal tender but allowed it as a store of value for Ukrainians, who use it for remittances and funds. While there is a limit on daily fund transactions due to regulatory restrictions, crypto has still been pivotal for humanitarian aid, with over $100 million spent on military and medical supplies by 2022.

Key Developments in Ukraine’s Crypto Market

The 2022 invasion catalyzed crypto’s rise, with government wallet addresses shared on social media raising millions. The 2021 legalization of virtual assets marked a turning point, followed by refined laws in March 2025. The National Securities Commission introduced a taxation framework, detailing income, corporate, and VAT rules. Draft Law No. 10225-1, set for mid-2025 adoption, regulates crypto with IMF input, taxing profits upon fiat conversion. Public perception shifted from skepticism to acceptance as crypto proved its utility in crisis.

Market Size & Growth of Crypto in Ukraine

Ukraine’s crypto market is projected to hit $149.5 million in revenue by the end of 2025, per Statista, with a steady annual growth rate driven by war-time needs and regulatory clarity. Between July 2023 and June 2024, crypto inflows reached $106.1 billion, per Chainalysis.

Popular Cryptocurrencies

Bitcoin (BTC) leads, valued for its stability, followed by Ethereum (ETH) for DeFi applications. Stablecoins like USDT and USDC dominate remittances, while altcoins like Solana (SOL) gain traction among traders.

Popular Exchanges/Platforms

Global exchanges like Binance and Kuna (a Ukrainian pioneer) dominate, alongside influencers like Michael Chobanyan, Kuna’s founder, who estimates weekly SME crypto turnover at $5 million. Local startups and IT firms also drive blockchain innovation.

Government Stance on Crypto

By 2025, Ukraine’s government will embrace crypto with cautious optimism, viewing it as an economic recovery tool. For now, crypto can be used as an investment tool for Ukariens and limited to a volume of transactions.

Crypto Regulation in Ukraine

The 2021 Virtual Assets Law laid the groundwork, legalized in 2022 by President Zelensky. The National Bank of Ukraine (NBU) and the National Securities Commission oversee the sector, aligning with the EU’s MiCA framework by 2025. Anticipated laws may set tax rates at 5–10%, per X posts, balancing revenue with innovation. AML compliance will likely tighten to maintain global legitimacy.

Cryptocurrency Wallets in Ukraine

Types of Wallets: Hot wallets (e.g., mobile apps) and cold wallets (e.g., hardware devices) are prevalent. Software wallets suit active traders, while hardware options secure long-term holdings.

Wallet Adoption: Trust Wallet and MetaMask dominate for their DeFi compatibility, with Ledger gaining ground for security-conscious users.

Crypto Taxation in Ukraine

As of March 2025, crypto profits are taxed like securities—18% personal income tax plus 1.5% military duty—only upon fiat conversion, per the NBU. Users must declare foreign or domestic crypto income annually, with no specific crypto tax code yet. The 19.5% total rate applies, though a proposed 5–10% crypto-specific rate is under discussion.

Crypto Education & Notable Figures in Ukraine

Crypto awareness and adoption rate is high, with 70% of urban adults familiar with crypto by 2024, per local surveys. Adoption reflects economic survival and tech literacy. Crypto events like The Kyiv Blockchain Forum and online meetups educate thousands yearly and encourage investors to invest more in cryptos. Local platforms like CryptoHub Ukraine and global sites like Binance Academy offer learning tools. Notable crypto figures like Michael Chobanyan and Mykhailo Fedorov, Digital Transformation Minister, advocate for crypto’s role in recovery.

Crypto’s Future in Ukraine

Ukraine’s crypto growth projections lead user adoption to reach 20% by 2027, with market revenue doubling to $300 million, driven by legalization. Constant government-supportive policies attract investment, but overregulation or war escalation could hinder growth. Still, Ukraine’s IT sector advances blockchain in logistics and governance, enhancing crypto’s utility.

Conclusion

In 2025, Ukraine’s cryptocurrency scene will shine as a beacon of adaptability amid adversity. War and economic strain have forged a nation of crypto pioneers, leveraging digital assets for survival and hope. With legalization on the horizon and a thriving tech spirit, Ukraine isn’t just riding the crypto wave—it’s steering it toward a bolder, brighter future.

Frequently Asked Questions (FAQs)

1. How do I start trading in Ukraine?

2. Is crypto legal?

Yes, since 2022, with full regulation by mid-2025.

3. What’s the safest wallet?

Ledger for long-term storage.

4. Are profits taxed?

Yes, at 19.5% upon fiat conversion.

5. Which exchanges are popular?

Binance, Kuna, and WhiteBIT.

6. What’s staking?

Locking crypto to earn rewards on networks like Ethereum.

7. Can I use crypto for aid?

Yes, via donation wallets.

8. What security risks exist?

Phishing and exchange hacks.

9. How do regulations affect trading?

They enhance trust but may raise fees.

10. Where can I learn more?

Try CryptoHub Ukraine or Binance Academy.