In the absence of comprehensive regulation of the cryptocurrency market, Ukraine has lost at least $10 billion in stolen funds and unrealized tax revenues, according to a report by the Royal United Services Institute (RUSI).
Analysts highlight the main risks as:
- uncontrolled operations of over-the-counter (OTC) platforms;
- the role of cryptocurrencies in financing the purchase of sanctioned components for the Russian military;
- the activities of money mules.
According to experts, OTC services are increasingly used to circumvent international sanctions, including the purchase of dual-use components for the Russian army.
The report names the messaging app Telegram as one of the most popular platforms where Russian entities conduct illegal crypto operations, including those related to drug trafficking.
Money mules, according to RUSI’s estimates, siphon $24 million from the Ukrainian budget monthly.
“In 2024, banks closed 80,000 ‘drop’ accounts, but criminals continue to lure impoverished citizens, laundering money for just $120,” the study states.
Analysts urged local authorities to recognize the link between cybercrime and illegal financing and to establish clear regulatory rules.
“Inaction could result in Ukraine remaining a hub for laundering Russian money, while simultaneously deterring legitimate startups with excessive taxation and corruption,” the authors declared.
They predict that improved oversight could return up to $10 billion to the country’s budget.
In August 2023, specialists from the Bureau of Economic Security estimated that Ukraine missed out on about $81 million in taxes from the activities of local bitcoin exchanges over 10 years.
The enactment of the law “On Virtual Assets,” approved in 2021, has been postponed until the taxation of crypto operations is established.
In May 2025, the Office of the President of Ukraine blocked the consideration of a bill on the regulation of digital currencies in the country. Reportedly, the decision was influenced by the NSSMC, which was to become one of the market regulators.
The task of developing specialized cryptocurrency legislation was included in Ukraine’s National Revenue Strategy for 2024-2030 and in the €50 billion reform list.