Context

The global market of virtual assets (cryptocurrencies, game currencies and object, loyalty points) is growing exponentially. The cumulative market capitalization of cryptocurrencies was $237B in 2018.

In the parallel, the Ministry of Digital Transformation of Ukraine states goals in increasing the share of IT in the GDP and improving the accessibility of public digital services. Both goals can be achieved with proper market regulation and stimulation.

Goals by 2030

Develop an attractive & competitive jurisdiction for crypto companies
Allow and support the launch of innovative products
Increase volume and the share of Ukraine in the global crypto market
Increase the tax revenue

Plan

In close collaboration with market experts and organizations as Financial Action Task Force (FATF) to develop the legislation on the status of virtual assets as well as preferential taxation terms for the first years (end 2020 - start 2021)
Build automated registration and analytical tools for better monitoring compliant with global Anti Money Laundering (AML) practices (end 2020)

Engage business and build productive and reliable relations with key representatives through personal connections, events and media (continuous)
Continue the market development with activities like user education and startup support (2021-2025)

Market overview

About five international cryptocurrency exchanges have offices in Ukraine but do not conduct their activities here due to the absence of transparent rules of the game and risks from law enforcement agencies. In 2014 about 10% of the world’s mining was carried out in the country. But due to the lack of regulation and the actions of law enforcement agencies, the country has lost this competitive advantage. Transparent rules of the game the market experts are now actively working on and which are planned to be submitted to the Parliament this fall will allow the domestic crypto industry to enter a new stage of its development. [source, 2018]

☝

See full report (2022)

Historical Data

Ukraine is #1 in the world by adoption (by Chainalysis, 2020)
72% of the country’s residents know/have heard about the cryptocurrency [KANTAR TNS study]
13% of them own virtual assets and conduct transactions with them [KANTAR TNS study]
60+ businesses operating

In 2017 19 projects with Ukrainian teams successfully conducted ICO, and as a result collected a total of more than $160 million in cryptocurrency [joint study by Deloitte and UVCA]
Over $700M in investments acquired in 2017–2020 (rough estimate)
Index or percentage of Internet penetration in the country – 71% / 30M people [2019]
Index or percentage of mobile penetration in the country – 133% / 57M devices [2016]