Ukraine Faces $10 Billion Crypto Challenge Due to Weak Regulation
A report by RUSI highlights that Ukraine could recover at least $10 billion in stolen funds and lost tax revenue by implementing comprehensive cryptocurrency regulation. Weak oversight facilitates illicit finance, including sanctions evasion and money laundering, posing risks to national security.
The report identifies over-the-counter (OTC) crypto activities as a primary risk area. Unregulated transactions enable the procurement of sanctioned components for the Russian military and the operation of money-mule networks. Ukraine's failure to enact its 2022 Virtual Assets Law, pending a taxation bill, creates a significant regulatory void.
RUSI recommends Ukraine focus on regulating stablecoins, integrating cybercrime and illicit finance enforcement, and establishing clear rules for legitimate businesses while deterring illicit actors.