Ukraine has already suffered at least $10 billion in losses due to the lack of full regulation of the cryptocurrency market. This is stated in an August report by the Royal United Services Institute for Defence Studies (RUSI).
Analysts noted several key risks: uncontrolled activities of over-the-counter (OTC) platforms, the use of cryptocurrencies to purchase sanctioned components for the Russian army, and money mule operations.
“In response to the sharp rise in the use of virtual assets, new opportunities for illegal financial activity have emerged, in particular through money mules, commonly referred to in Ukraine as ‘drops’,” the study says.
RUSI estimates that the operation of such schemes alone costs the state budget about $24 million a month.
The document notes that Telegram is one of the most popular platforms where Russian participants conduct illegal crypto transactions, including those related to drug trafficking.
Experts called on the Ukrainian authorities to recognize the link between cybercrime and illicit finance and create clear rules for the market.
“Failure to act could turn Ukraine into a centre for laundering Russian funds, while scaring away legitimate startups with excessive taxation and corruption,” the authors said.
RUSI believes that with more effective supervision, Ukraine could return up to $10 billion to the budget.
Despite the adoption of the Law on Virtual Assets in 2022, it has not yet entered into force due to unresolved taxation issues.
In April 2025, the parliament received draft law No. 10225-d, which provides for the licensing of crypto platforms, capital, transparency, and KYC standards, as well as new reporting procedures. At the same time, there is still no designated regulator responsible for this market.
According to Danylo Hetmantsev, chairman of the Parliamentary Committee on Finance, Taxation, and Customs Policy, the bill on legalizing the crypto market will be considered in September.
Experts stressed that action is needed now.
“Legislation is not a prerequisite for response,” RUSI concluded, calling for the development of public-private partnerships and the use of private tools to identify and deter illegal activities.
As a reminder, the Bureau of Economic Security of Ukraine previously reported that, between 2013 and 2023, the treasury did not receive approximately UAH 3 billion in taxes from crypto exchanges established by residents.
According to the Ukraine Economic Outlook report commissioned by KUNA, from 2016 to 2022, Ukraine lost $48.8 billion in direct revenues and about $4 billion in tax revenues due to the lack of regulation of the crypto market.
In addition, a study by Global Ledger for the Ministry of Digital Transformation showed that the state lost UAH 8.34 billion in taxes over four years. From the users of one centralized exchange alone, between UAH 1.31 billion and UAH 6.53 billion in personal income tax could be collected.