The Ukrainian state is finally taking cryptocurrency seriously. The law on virtual assets, which has been in the drawer for a long time, may become operational in the near future. But instead of a triumph, crypto-enthusiasts see in this not so much new opportunities as risks for the very idea of decentralization.
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Why is the law still not working?
The law was adopted in 2022, but without changes to the Tax Code, it is only a formality. The state wants taxes, and we want freedom, and here interests diverge. Tax regulation is currently being prepared: 5% of profit and a military levy. But for many crypto enthusiasts, this looks like a blow to the breath, because the habit of "being outside the system" is the basis of the crypto ideology.
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What is hidden behind the nice words about legalization?
1. Full control. Licenses for exchanges, mandatory KYC, transaction monitoring. Anonymity? Forget it. Your satoshis are no longer "yours" if they can be traced back to a penny.
2. Bureaucracy. Declarations for each operation? Imagine a trader who opens dozens of trades every day. You will have to spend a lot of time on reporting alone.
3. Attack on small crypto-operations. Keep assets and not declare them? This will become a "grey zone" that will cause a constant risk of fines.
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Critical points for crypto enthusiasts
Instead of freedom, there is state supervision. Crypto was created as an alternative to the banking system, and now it becomes part of it. The Ukrainian version of the law is more like a way to take control of the market, rather than giving it the freedom to develop.
Discrimination of anonymity. The state does not care that anonymity is not always about crime. Often it is about the right to privacy, which will now be destroyed.
Regulation. The crypto market has always been attractive due to the lack of barriers, but now it is gradually being turned into "another financial system".
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What to expect?
1. State control. Once the law comes into effect, every transaction will be visible to the regulator.
2. Decrease in the activity of small investors. For many users, it will no longer make sense to keep small amounts in crypto, as the reporting costs may outweigh the benefits.
3. Risk of loss of foreign exchanges. If large platforms do not want to license in Ukraine, we will have to look for workarounds.
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An alternative view
Instead of creating excessive regulation, the government could offer a simplified system for crypto-investors. For example, tax exemption for small transactions or an automated declaration system. But so far, the law looks more like an attempt to tame the "wild west" of cryptocurrencies, turning it into a controlled and regulated financial instrument.
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Visnovok
Cryptocurrencies promised us freedom, but in return we get regulations, taxes and control. The law on virtual assets, although it looks like a step forward, actually raises the question: is Ukraine ready to support decentralization, or is it just another way to collect taxes? The choice is ours, but it's time to act fast before freedom becomes an illusion.
