UAH 20 billion in taxes per year and three of its own crypto unicorns. The government has prepared a plan for the legalization of crypto by 2030

dev.ua figured out what awaits Ukrainian cryptons, exchanges, and Web3 startups in the coming years.

Coming out of the twilight zone: 20 billion to the budget

Currently, the virtual assets market in Ukraine is in a «gray» zone. The state’s goal in 4 years is to de-shadow at least 20% of the industry.

According to the Government’s plan, gross tax revenues from transactions with virtual assets should reach 20 billion hryvnias per year. In order for this money to actually reach the budget, the NBU, the National Securities Commission (NSSMC), the Ministry of Digital Economy and Finance, and the Ministry of Finance should develop a concept of «stimulating taxation.» That is, the rates should be such that it would be profitable for businesses and traders to pay taxes in Ukraine, rather than hiding assets in Dubai or Lisbon.

Let us remind you that the Verkhovna Rada has been promising for several years to consider a bill on crypto in order to finally introduce a legal taxation mechanism. But so far, nothing has come of it.

«Simplification» for crypto and regulatory sandboxes

In order not to suffocate the industry at the start with bureaucracy, the Concept provides for the introduction of several innovative mechanisms:

• Automated taxation: The process of calculating tax liabilities and submitting reports is planned to be simplified as much as possible. Ideally, taxes on trading or investment profits should be calculated «automatically.»
• Fusion with Fiat: The state plans to legally combine the virtual asset market with the existing classic banking infrastructure. This means an end to card blocking for P2P transfers on crypto exchanges — transactions will become transparent and understandable for financial monitoring.
• Regulatory Sandboxes: A special testing regime will be launched for high-tech Web3 startups. They will be able to test their products in real conditions without the risk of receiving huge fines for violating financial legislation that has not yet been adapted for blockchain.

RWA trend: tokenization of the real sector

One of the most interesting points of the Concept is the focus on tokenization of real sector assets (RWA — Real World Assets). This is a global Web3 trend, when real estate, securities, gold or even agricultural products are converted into digital tokens on the blockchain to simplify trade and attract investment. The government expects that by 2030, at least 200 startups will appear in Ukraine that will be engaged in the tokenization of real businesses.

What KPIs has the state set for 2030?

The Ministry of Digital Affairs' plan looks very ambitious. If the law on virtual assets finally works together with the tax code, by 2030 we should see the following figures:

• 3 unicorn companies in the field of virtual assets (with a market valuation of over $1 billion each).
• 20,000 legally employed specialists who will work in crypto service provider companies.
• 20 crypto startups per 1 million population.
• 50 Web3 startups that will attract over 100 thousand euros in investment.
• 50 crypto companies that will successfully enter international markets.

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