Ukraine was in sixth place in terms of adoption of cryptoassets, overtaking the Russian Federation

Ukraine took the sixth position in the global ranking of adoption of cryptoassets, leaving behind Russia. This was noted in the analytical report of the company Chainalysis. Ministry of Digital Transformation asserts, that Ukraine has every chance to become a leading crypto center in Eastern Europe.

“Even in conditions of war, we continue to hold high positions in international rankings. In order not only to maintain this pace, but also to achieve even greater development of the field, the crypto market needs to be legalized. For this, the Ministry of Digital, together with business representatives, developed a draft law on virtual assets No. 10 225- 1. Its purpose is to create favorable conditions for working with a new class of assets and establish clear rules for their taxation.”, — the Ministry of Statistics commented on the results of the study.

TOP-20 countries by the level of adoption of cryptoassets

According to Chainalysis, the following countries are in the top twenty of the rating:

1. India
2. Nigeria
3. Indonesia
4. USA
5. Vietnam
6. Ukraine
7. Russia
8. Philippines
9. Pakistan
10. Brazil
11. Turkey
12. Great Britain
13. Venezuela
14. Mexico
15. Argentina
16. Thailand
17. Cambodia
18. Canada
19. South Korea
20. China

The main provisions of the draft law on virtual assets

Draft Law No. 10225-1 provides for preferential taxation of income from cryptocurrency operations for individuals for eight years. In the first three stages, the tax rate will be 5%, the next five years – 9%, and after that – 18%.

For crypto-providers, it is envisaged to retain the income tax at the level of 18%, or the option of choosing a 9% tax on the withdrawn capital, if the company operates within the special regime of Diya.City.

The draft law opens up new opportunities for the development of the cryptocurrency market. In particular, it provides for the restoration of crypto-hryvnia gateways, the provision of bank accounts for crypto-companies and the promotion of global e-commerce. The law will also provide legal protection for market participants and insurance for crypto investments, which will create new jobs and promote the growth of companies in this sector.

This approach will contribute not only to the development of the crypto industry in Ukraine, but also to the formation of a culture of paying taxes among its participants. In addition, the data obtained during the transition period will allow establishing the most optimal tax rates for businesses in this industry.