The Vice Prime Minister and Minister of Digital Transformation of Ukraine, Mykhailo Fedorov, stated that the legalization of the cryptocurrency market could potentially bring up to 15 billion UAH to the Ukrainian budget. This is mentioned in a study by Global Ledger, which notes that Ukrainian users generate about 2.5% of the global cryptocurrency exchange traffic.
"If the crypto market were legalized, the state could receive about 8.34 billion UAH in taxes from exchanges registered in Ukraine and up to 6.53 billion UAH from taxing the income of citizens for the years 2021–2024," Fedorov said.
According to him, the Ministry of Digital Transformation team is actively working on a draft law to legalize the crypto-assets market within a working group created under the relevant committee. The volume of revenues will directly depend on the regulatory and taxation concepts that will be included in this law.
According to an analytical report from Global Ledger, Ukraine's cryptocurrency market shows significant potential for taxation. Key indicators include transaction volumes on centralized exchanges (CEX), the mining sector, and the use of non-custodial wallets (which provide users full control over their private keys and funds).
The research highlights that Ukrainian miners account for an average of 0.94% of the global market. Their profits over the past four years amounted to $113 million, indicating a steady increase in activity.
It is also noted that Ukrainian users account for 0.24% of global cryptocurrency wallet downloads. In May 2024, there were 219,378 downloads in Ukraine.
"Legalizing cryptocurrencies is needed not only by the state but also by businesses. For entrepreneurs, it provides competitive advantages on the global market, legal protection, and the ability to attract investments. Thanks to market legalization, Ukrainian specialists will be able to work at home, and the budget will be replenished annually with additional tax revenues," Mykhailo Fedorov believes.
