- Ukraine plans to legalize cryptocurrency by 2025 under strict regulations, positioning itself as a regional leader
- The Ministry of Digital Transformation will oversee crypto activities, introducing a central bank digital currency and tokenized assets
What happened: Ukraine to legalize crypto by 2025
Ukraine has announced on Thursday(December 12) that it plans to legalize cryptocurrency by 2025. This is aims to create a regulated environment for digital assets.
The Ministry of Digital Transformation will lead the effort, collaborating with blockchain firms like Crystal Blockchain BV to ensure compliance with anti-money laundering and counter-terrorism financing standards. The bill designates cryptocurrencies as intangible assets rather than legal tender and outlines rules for exchanges, wallets, and tokenized securities. Additionally, Ukraine plans to introduce its own central bank digital currency, the “e-hryvnia,” as part of its strategy to modernize financial systems.
This legislation also supports the development of tokenized ecosystems, including government bonds and other securities. By enabling businesses to open bank accounts and operate legally within the crypto space, Ukraine aims to attract foreign investment and become a hub for blockchain innovation in Eastern Europe
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What it’s important
Ukraine’s move to legalize cryptocurrency aligns with a global trend of governments incorporating blockchain into financial systems. Countries like El Salvador, which adopted Bitcoin as legal tender in 2021, have showcased both the potential and risks of embracing cryptocurrencies. El Salvador’s initiative spurred economic interest but faced criticism due to high volatility and limited infrastructure. Ukraine’s more measured approach, focusing on regulation and tokenized assets, offers an alternative model that balances innovation and risk management.
For small companies, the legal clarity could be transformative. Startups such as REMME, a Ukrainian blockchain firm specializing in secure identity management, stand to benefit significantly. With access to banking services and a formalized crypto framework, such companies can expand operations and attract foreign investments. In Estonia, a similar regulatory environment helped boost blockchain startups like Guardtime, which now powers government-level digital identity systems. Ukraine’s strategy could replicate this success, fostering a tech-driven economic revival.
