Binance Insights: Key Amendments and Their Impact on Ukraines Crypto Regulatory Landscape Translation: Binance Insights: Key Amendments and Their Impact on Ukraines Crypto Regulatory Landscape

Kirill Khomyakov, the head of regional markets at Binance for the CIS, Central and Eastern Europe, and Africa, discussed proposed amendments to Ukraine’s cryptocurrency regulation bill.

Earlier this month, the Verkhovna Rada of Ukraine approved the draft law “On Virtual Asset Markets” in its first reading, which will define the status and taxation of cryptocurrencies in the country.

During his speech at the Binance Odesa Meetup, Khomyakov mentioned that the amendments aimed at «simplifying life for users» were submitted by Binance, other exchanges, and the Ministry of Digital Transformation. He anticipates significant changes to the bill by its second reading.

In his view, fiscal policy is the main concern.

«Currently, taxation operates on a capital gains basis, meaning you will only pay taxes on assets sold for the national currency. This is a positive development—there won’t be any taxes on transactions or on whether your portfolio grows or shrinks,» Khomyakov stated.

He expects that the profit tax rate upon conversion to hryvnias will be set at 23%—18% as the general tax plus a military levy. Binance has proposed a preferential regime, leaving the decision to the legislators, Khomyakov added.

Khomyakov predicts that the second reading may take place by the end of the year, and after presidential approval, the law could come into effect on January 1. Following that, the regulator will need 6-12 months to prepare secondary legislation and develop procedures.

«The good news is that until this licensing process begins, nothing will change for you and me. At least until the end of this year and for approximately the first nine months of the next year, everything will continue as is,» noted the Binance representative.

He emphasized that the Cabinet has not yet decided which agency will oversee cryptocurrency market regulation—be it the National Bank, the National Securities and Stock Market Commission (NSSMC), or the Ministry of Digital Transformation.

According to Khomyakov, Binance has submitted numerous amendments regarding user data protection. If these amendments are accepted, there will be no changes in that regard for crypto platforms.

Currently, law enforcement agencies can request information in relation to suspicious cases, but client data is not shared with any authorities on a large scale, he clarified.

«We believe that this is very important for maintaining your security and protection. This is a primary focus of the amendments, and there will be quite a few of them. I hope that once the law is signed, it will be much more user-friendly, constructive, and easier for all industry stakeholders to implement,» he emphasized.

Khomyakov pointed out that the government is discussing the establishment of a national cryptocurrency reserve, but this issue is not a top priority.

«The National Bank is categorically opposed to this law, but it’s not about making cryptocurrency a means of payment alongside the Ukrainian hryvnia; rather, it’s about allowing a state body to purchase crypto assets and thus increase state assets,» he explained.

Implementing regulation will allow the exchange to receive free deposits in hryvnias from any bank, Khomyakov shared.

He also added that Binance plans to launch a dollar card in Ukraine soon, followed by a hryvnia card.

Among other platform plans is a project tentatively named «Resilience Lab,» which will provide grants for Ukrainian blockchain developers.

“There will be a robust sponsorship fund specifically for Ukraine. We will announce this shortly,” Khomyakov emphasized.

In Khomyakov’s opinion, the future of the Ukrainian P2P market remains uncertain, as these mechanisms are not defined in the proposed legislation. It will all depend on the position of the regulator selected by the Cabinet.

«I also don’t know if any separate licenses will be required for this. In most jurisdictions with regulations allowing P2P trading, professional traders aren’t required to obtain licenses, yet there are examples where this is necessary. How it will be in Ukraine is still unclear.»

He stressed that Binance will do «everything possible» to protect its P2P platform, recognizing its importance to users.

Khomyakov stated that the exchange has completed the full application for the MiCA license in Europe and hopes to obtain it in the fourth quarter. He noted that these regulations do not permit P2P transactions.