Quick Answer
Yes, cryptocurrency is legal in Ukraine but not yet fully regulated.
- The 'On Virtual Assets' law legalized crypto, establishing a basic framework.
- However, a full regulatory and tax framework is still pending implementation.
Legal Status of Crypto in Ukraine
As of mid-2025, cryptocurrency in Ukraine occupies a legal gray area, caught in a transitional phase between basic legalization and full-scale regulation. Although the foundational "On Virtual Assets" law has been passed by Parliament, it remains inactive pending crucial amendments to the country's Tax Code. The National Securities and Stock Market Commission (NSSMC) is slated to be the primary regulator, tasked with overseeing a framework that is being aligned with the EU’s MiCA Regulation. Until the tax legislation is finalized and the main law comes into force, the full regulatory structure is not yet operational, and companies cannot obtain licenses.
Current Regulations
Ukraine's current crypto regulations are built upon the foundational ‘On Virtual Assets’ law, which legalizes digital assets but is not yet fully in force. Its implementation hinges on the finalization of a tax framework; a recent bill proposing an 18% income tax and a 5% military tax on crypto profits has passed its first reading. Once active, the framework will be overseen by the National Securities and Stock Market Commission, which will handle licensing for service providers and align national policy with the EU’s MiCA Regulation.
Regulatory Authorities
Ukrainian crypto regulation is overseen by two primary authorities:
- National Securities and Stock Market Commission (NSSMC): As the main regulator, the NSSMC is responsible for shaping crypto policy and issuing permits for virtual asset service providers. It also ensures compliance with legal standards and aligns national rules with the EU’s MiCA framework.
- National Bank of Ukraine (NBU): The NBU's role is to license financial institutions that plan to offer services related to virtual assets backed by currency values. This ensures that only authorized institutions can handle these specific types of crypto-related financial activities.
Historical Context
Ukraine's journey toward crypto regulation began in September 2021, leading to a pivotal moment in February 2022 when parliament passed a law to formally legalize cryptocurrencies. This shift established a legal market, offering protection to participants and creating opportunities for business development. By mid-2025, the framework was being aligned with the EU’s MiCA Regulation to harmonize with international standards. Further progress came in September 2025, when a bill to legalize and tax crypto passed its first reading, signaling a move toward a fully operational and regulated market designed to attract investment.
Compliance Requirements for Businesses in Ukraine
In Ukraine, businesses in the financial sector must adhere to a comprehensive compliance framework primarily enforced by the National Bank of Ukraine (NBU) and the State Financial Monitoring Service. According to guidance on banking regulation, the essential rules include:
- Anti-Money Laundering (AML) and Know Your Customer (KYC): These are foundational requirements. Financial institutions must perform thorough due diligence on all clients before establishing a business relationship. This involves identifying and verifying the client and their ultimate beneficial owners (UBOs), understanding the purpose of their financial activities, and conducting ongoing monitoring. A risk-based approach is mandatory, with high-risk clients requiring enhanced scrutiny and annual data updates. Suspicious transactions and those exceeding UAH 400,000 (approx. USD 9,500) must be reported to the authorities.
- Internal Controls and Governance: Banks are required to establish robust internal systems, including dedicated departments for risk management, compliance, and internal audit, with key personnel subject to NBU approval. They must also adopt a board-approved code of conduct and a formal remuneration policy.
- Prudential and Operational Requirements: Institutions must comply with strict prudential rules, such as maintaining minimum capital adequacy and liquidity ratios. Other mandatory procedures include membership in the Deposit Guarantee Fund and conducting regular cybersecurity self-assessments with reporting to the NBU.
- Sanctions and Ownership Control: A critical compliance function is screening clients against sanctions lists and refusing to do business with sanctioned entities. Additionally, any acquisition of substantial control (at thresholds of 10%, 25%, 50%, or 75%) requires prior approval from the NBU.
Why this matters for Cross-Border Payments
For businesses managing international payments into and out of Ukraine, these regulations are a double-edged sword, offering long-term stability at the cost of immediate operational friction. The strict AML/KYC protocols and transaction reporting thresholds can slow down fund transfers and increase administrative overhead for foreign companies. This evolving regulatory landscape, particularly the incomplete crypto framework, introduces significant uncertainty, creating pain points for businesses that must navigate compliance without a fully established legal structure.
How Lightspark Enables Compliant Crypto-Native Payments
Lightspark offers a global payment network, the Money Grid, built on Bitcoin to streamline money movement. Through products like Lightspark Connect (for native Bitcoin access) and Grid Switch (for fiat-based real-time payments), it enables instant, low-cost cross-border transactions. This infrastructure bypasses the slow, fragmented processes of traditional finance by using the Lightning Network for 24/7 settlement. By doing so, it directly addresses the operational friction and delays that businesses face with international payments, turning a common pain point into a potential revenue stream.
For regulated institutions navigating Ukraine's evolving rules, Lightspark provides tools to assist with compliance. The platform offers audit-ready reporting and flexible key management, allowing businesses to maintain their own security and legal records. Features like built-in OFAC screening and support for the compliant-ready Universal Money Address (UMA) protocol give financial institutions the infrastructure needed to meet their regulatory obligations without Lightspark handling compliance directly.
To learn more about how Lightspark can streamline your cross-border payments, visit the official website.
Notice: This article is provided for informational purposes only and does not constitute legal advice.
Sources
- Olekhov, Ihor, et al. “CMS Expert Guide to Crypto Regulation in Ukraine.” CMS Law-Now, CMS Legal, 16 June 2025, cms.law/en/int/expert-guides/cms-expert-guide-to-crypto-regulation/ukraine.
- Plotnikov, Oleksander, and Kyrylo Senyshyn. “Banking Regulation 2025 - Ukraine.” Chambers and Partners, 10 Dec. 2024, practiceguides.chambers.com/practice-guides/banking-regulation-2025/ukraine.
- Sinclair, Sebastian. “Ukraine Passes Law Legalizing Crypto as Threat of War Looms.” Blockworks, 18 Feb. 2022, blockworks.co/news/ukraine-passes-law-legalizing-crypto-as-threat-of-war-looms.
- Tepedino, Christopher. “Ukraine’s Parliament Backs Crypto Legalization, Taxation Bill in First Reading.” Cointelegraph, 3 Sept. 2025, cointelegraph.com/news/ukraine-crypto-legalization-taxation-bill-first-reading.
