Ukraine Launches Investigation Into Tax Evasion by Domestic Crypto Exchanges

Ukraine’s Economic Security Bureau (ESB) is currently conducting an investigation into local cryptocurrency exchanges. The bureau discovered that unregulated exchanges operating in the country have led to a loss of 3 billion Ukrainian hryvnia (over $80 million) in uncollected taxes. This investigation is in response to the Ukrainian regulators’ decision to tax crypto gains at 18% starting in 2024.

The head of Ukraine’s Economic Security Bureau, Andriy Pashchuk, revealed in an interview with Forbes Ukraine that the investigation is targeting trading platforms with local beneficiaries. To track cryptocurrency transactions, ESB analysts are using data services like Chainalysis and Crystal Blockchain. In addition to on-chain data, the bureau is also incorporating open-source intelligence (OSINT) insights to assess the overall cryptocurrency turnover within digital wallets on Ukrainian exchanges. However, Pashchuk did not provide specific details about the current stage of the investigation.

In August 2023, the Economic Security Bureau released an official statement stating that Ukrainian crypto exchanges had accumulated approximately $445 million in trading fees over the past decade. Transactions involving Bitcoin (BTC), Ethereum (ETH), and Tether (USDT) within the domestic market totaled more than $55 billion from 2013 to 2023.

Regarding Ukraine’s crypto regulatory framework, Andriy Pashchuk, deputy director of the Economic Security Bureau, highlighted that there are differing opinions on how these transactions should be taxed. The bureau will act according to the provisions adopted by the deputies. However, the state continues to experience significant monthly tax revenue losses until the issue is resolved.

In March 2022, Ukrainian President Volodymyr Zelenskyy signed the “On Virtual Assets” legislation, which established a regulatory framework for cryptocurrencies. The government also expressed its commitment to revising Ukraine’s tax and civil codes to align with this newly established legal framework. However, the delayed implementation of regulations has created confusion and uncertainty among the crypto community in Ukraine, with some individuals concerned about retroactive taxation for transactions conducted over the past decade.

Source: [Forbes Ukraine](

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J-S Tremblay
About the author - J-S Tremblay

I've been involved in the cryptocurrency world since 2016 and trading since 2019. I started Moon and Lambo in 2021. I'm passionate about crypto and love to share my knowledge. I hate bankers and I hope that cryptocurrency will change the financial world for the better. View full profile...

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