Ukraine's Crypto Regulation: A Mixed Bag for Businesses
The Ukrainian government is on the verge of regulating its crypto industry, and experts are weighing in on what this means for businesses. According to Oleksii Semeniuk, Chairman of the National Securities and Stock Market Commission (NSSMC), companies that register in Ukraine after legalization will gain access to a large user market.
However, Dmytro Nikolaievskyi from the Ministry of Digital Transformation countered that under the Markets in Crypto-Assets (MiCA) framework, companies with EU licenses will automatically gain access to the markets of all 27 member states.
Nikolaievskyi suggested that one potential advantage for Ukrainian registrants is the ability to prepare tax reports more natively and interact with the Tax Service, which could give them a competitive edge. MP Yaroslav Zhelezniak noted that while Ukraine may not offer low-tax or highly permissive regulations, it can compete with other jurisdictions by being on the FATF whitelist and having a positive financial history.
Others were less optimistic about Ukraine's prospects. Maksym Demianiuk, founder and CEO of UAHg, said that even if Ukraine has some better conditions, they won't be enough to attract strong projects, as everything else matters too, including institutions and the judicial system.