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This material was prepared by Viktoriia Kyfyak (Yuriy Fedkovych Chernivtsi National University) for the Ethics & Finance course within the project Localizing Economic Education for V4 Countries and Beyond. The project was co-financed by the governments of Czechia, Hungary, Poland and Slovakia through Visegrad Grants from the International Visegrad Fund. The mission of the fund is to advance ideas for sustainable regional cooperation in Central Europe. See https://visegrad.webflow.io/ for more information.
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Financial innovation and crypto-industry in UKRAINECommentsData source
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Size of the crypto-industry in Ukraine:106100000As of the period from July 2023 to June 2024, Eastern Europe received $499.14 billion in on-chain crypto value, with Ukraine receiving around $106.1 billion. This places Ukraine among the largest cryptocurrency markets globally.https://www.chainalysis.com/blog/2024-eastern-europe-crypto-adoption/#:~:text=That%20both%20countries'%20crypto%20markets,receiving%20%24106.1%20billion%20in%20crypto.
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Do you have some measures available? "Ukraine ranks 6th globally on the crypto adoption index, highlighting its strong adoption despite ongoing conflict. Both institutional and retail adoption have grown, with an increase of 361.49% in large institutional transactions in DeFi, and significant growth in retail transactions."https://www.chainalysis.com/blog/2024-eastern-europe-crypto-adoption/#:~:text=That%20both%20countries'%20crypto%20markets,receiving%20%24106.1%20billion%20in%20crypto.
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How is the sector growing?"Ukraine ranks 6th globally on the crypto adoption index, highlighting its strong adoption despite ongoing conflict. Both institutional and retail adoption have grown, with an increase of 361.49% in large institutional transactions in DeFi, and significant growth in retail transactions."https://www.chainalysis.com/blog/2024-eastern-europe-crypto-adoption/#:~:text=That%20both%20countries'%20crypto%20markets,receiving%20%24106.1%20billion%20in%20crypto.
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What are the main market participants?WhiteBIT, founded in Ukraine and now headquartered in Lithuania, is a prominent centralized exchange (CEX) with strong presence in Ukraine.Key participants include centralized exchanges (CEXs) like WhiteBIT (with Ukrainian roots) and decentralized exchanges (DEXs), which have seen a 160% growth.https://www.statista.com/outlook/fmo/digital-assets/cryptocurrencies/ukraine#revenue
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Is it possible to invest in crypto-ETFs in Ukraine?Currently, there are no specific crypto-ETFs available in Ukraine, although there is growing interest in Bitcoin ETFs globally, which could influence the market.
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Main crypto-activities in Ukraine:
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TradingСentralized exchanges, especially WhiteBIT, play a major role in crypto trading. DeFi activity has also surged, with a 160.23% increase in inflows to decentralized exchanges (DEXes).https://blog.whitebit.com/en/whitebit-coin-benefits-explained/
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MiningLimited due to the conflict but still present in some regions.Although less prominent in reports, mining activity exists but is overshadowed by trading and DeFi.
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OthersDeFi activity is significant, with $34.9 billion in DEX inflows in 2023, alongside some P2P payments in stablecoins for cross-border transfers.https://admin.lexikon.com.mx/archivos/The_2024_geography_of_crypto_report_1729164229.pdf#:~:text=Global%20crypto%20activity%20is%20increasing.%20Between%20the,to%20show%20global%20adoption%20growth%20over%20time. Р. 62
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Regulation of crypto in Ukraine:
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Is this sector regulated? If so, how and since when?The sector is in a "grey area" but progressing towards regulation. Ukraine is adopting EU's MiCA (Markets in Crypto-Assets) regulations as part of its EU candidacy.https://doi.org/10.32782/2304-0920/3-101-2
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Fiscal lawsCurrently in development; MiCA implementation could provide a clear framework by the end of 2024.https://doi.org/10.32782/2304-0920/3-101-2
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Financial regulationsFinancial regulations are evolving, with authorities promoting crypto adoption within a legal framework for economic support amid the war.https://www.tradingview.com/news/coinpedia:f21a44f8d094b:0-crypto-regulations-in-ukraine-2025/
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Other regulationsRegulatory framework discussions emphasize taxation, legitimacy, and consumer protection.
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What is the definition of crypto-currencies/assets? There is no universally accepted definition yet; however, crypto-assets are viewed as potential financial instruments for both investment and payments.
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Sanctions involving cryptos in Ukraine (Y/N)Yes
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Description of the sanctions: numbers, years, breaches, parties at stake, set by who, verdictsSanctions mainly target Russian entities, aiming to prevent the use of crypto to circumvent international restrictions. Specific cases, verdicts, or breaches are generally enforced by the National Bank of Ukraine (NBU) and other financial regulators.
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What is the "reputation" of the crypto-industry in Ukraine?Cryptocurrencies in Ukraine have a mixed reputation: they’re widely used as an alternative store of value and for P2P transactions but lack full regulatory clarity.
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Are crypto-currencies used in Ukraine to circumvent international sanctions?There’s no clear evidence of crypto use in Ukraine to circumvent sanctions, although there are concerns in neighboring Russia, where crypto has been utilized to bypass sanctions.
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