In Ukraine, the legal exchange of cryptocurrencies for fiat is carried out thanks to the adopted law "On Virtual Assets", which provides legal regulation of this market. After its introduction, the crypto industry became more transparent, licensed platforms appeared, and the exchange of cryptocurrencies for fiat is carried out in accordance with the law.
1. Licensed crypto exchanges and exchangers
Cryptocurrency exchanges and exchangers licensed in Ukraine that meet the requirements of the National Commission for Securities and Stock Market (NCSCFR) are the main way for the legal exchange of cryptocurrencies.
Such platforms are required to undergo financial monitoring, perform KYC (know your customer) and AML (anti-money laundering) procedures.
The main exchange fees on such platforms are transaction fees (on average 0.1-1% of the exchange amount), as well as withdrawal fees, which may vary depending on the platform and bank fees.
2. Banking institutions
Some banks cooperate with crypto exchanges, which allows customers to withdraw funds to bank accounts, ensuring the transparency of the exchange.
Banks charge commissions for transactions in the case of conversion of cryptocurrencies to hryvnia or other currency, which can amount to 1-2% depending on the bank's policy.
3. P2P platforms
Peer-to-Peer (P2P) exchange allows you to directly buy or sell cryptocurrency without the involvement of a third party. Although this is a legal method, it requires counterparty verification and may have increased risks.
Fees on such platforms may be lower than on centralized exchanges, but tax obligations remain.
Tax obligations
In Ukraine, income from transactions with cryptocurrencies is taxed at the personal income tax rate. It is 18% for residents and an additional military levy of 1.5%.
Profit is defined as the difference between the selling price and the cost of acquiring the cryptocurrency. In case of receiving a loss, the tax is not paid.
Entrepreneurs or companies engaged in cryptocurrency exchange activities are subject to appropriate income taxes depending on their tax system.
Result
Exchange of cryptocurrencies in Ukraine is legal if it is carried out through licensed crypto exchanges, banks or verified P2P platforms that ensure transparency of operations. Tax obligations on income from transactions with cryptocurrencies are 18% personal income tax and 1.5% military levy.
