The Verkhovna Rada has prepared a draft law on the regulation of crypto assets with expanded powers for the regulator
This week, the Verkhovna Rada plans to consider draft law No. 10225-d on regulating the circulation of virtual assets in Ukraine. Its authors, including the head of the parliamentary Committee on Tax Policy, Danylo Getmantsev, emphasize that the main goal of the document is to create legal mechanisms for the legal use of crypto assets, …
This week, the Verkhovna Rada plans to consider draft law No. 10225-d on regulating the circulation of virtual assets in Ukraine. Its authors, including the head of the parliamentary Committee on Tax Policy, Danylo Getmantsev, emphasize that the main goal of the document is to create legal mechanisms for the legal use of crypto assets, their taxation, and the protection of market participants’ rights.
The bill provides for the adoption of a new version of the law “On Virtual Assets” and amendments to the Tax Code, the Civil and Commercial Procedural Codes, the Code of Administrative Procedure, and a number of other laws. If supported, the regulations are to come into force on January 1, 2026, and the Cabinet of Ministers will be required to designate a regulator for this market within a month.
The document establishes rules for service providers in the field of crypto assets: mandatory authorization or registration with the regulator, annual reporting, and penalties for violations. At the same time, it is proposed to introduce taxation of transactions with virtual assets, in particular profits from their sale, as well as regulation of advertising and mechanisms to prevent fraud.
At the same time, the Main Scientific and Expert Directorate of the Parliament (GNEU) has submitted a number of comments. Experts point to terminological inconsistencies, in particular in the definitions of “retail owner” or “virtual asset,” as well as in the interpretation of insider information and market manipulation.
The provisions that effectively grant the regulator the functions of pre-trial investigation bodies sparked the most debate. Officials are proposed to be granted access to the premises of issuers, offerors, and service providers, as well as to any information systems and documents. They will be able to collect evidence, take photographs and video recordings, and interview witnesses on the basis of their own decisions.
The Code of Administrative Procedure is to be supplemented with new articles on the seizure of property, suspension of contracts, and granting access to information systems and premises. Court decisions in such cases must be enforced immediately. Judges will have to make a decision on the merits within 96 hours of the opening of proceedings.
According to the SSU, such powers create risks of violating the constitutional rights of citizens. In particular, the possibility of considering applications for access to premises without summoning the owner may lead to decisions based solely on the regulator’s arguments. The provisions on “controlled services,” which involve simulating the purchase or exchange of virtual assets during inspections, are also considered controversial.
The tax part is no less acute. The bill introduces penalties for failure to submit or late submission of reports by service providers, with the penalty set at 100 minimum wages with no alternatives. Experts consider this to be incompatible with the principle of individualization of legal liability. They also draw attention to the vague criteria for determining the value of assets in the case of “crypto-to-crypto” exchanges, which could create loopholes for minimizing tax liabilities.
In addition, the Civil Procedure Code proposes to enshrine new powers for the regulator in cases concerning the protection of informants, as well as in proceedings related to the disclosure of professional secrets. However, the lack of a clear definition of the term “whistleblower” and the classification of certain categories of cases as “separate proceedings” have raised doubts among experts as to their compliance with procedural norms.
According to its authors, draft law No. 10225-d should become a framework document that will allow Ukraine to integrate into the global crypto market regulation system. At the same time, a number of provisions need to be revised in order to avoid excessive interference with private rights and ensure the real effectiveness of tax control.
