Within 12 months, Ukrainians spent hundreds of millions of U.S. dollars to acquire cryptocurrency, according to a recent report.
The authors of the document, published by a major international development bank, have registered a spike in crypto activity in the war-torn nation.
Ukraine branded ‘heavy crypto user’
Cryptocurrency has gained popularity in Ukraine since Russia launched its invasion more than three years ago, not least as a result of fiat restrictions imposed by its monetary authority under martial law.
According to the European Bank for Reconstruction and Development (EBRD), the Eastern European country is a leader in terms of crypto usage among the nations in the regions where it operates, the Ukrainian National News (UNN) website and Russia’s TASS news agency reported.
In its latest Regional Economic Prospects report, issued in September, the bank assesses the exposure of these economies to cryptocurrencies, highlighting the rapid market growth and significant increase in transaction volumes.
Quoting data from between July 2023 and July 2024, the study notes:
“Ukraine emerged as another heavy user of crypto, having received $106 billion in crypto inflows over the period and having spent $882 million worth of Ukrainian hryvnia on Bitcoin purchases.”
The authors attribute the sizable crypto activity largely to institutional transfers, ranging between $1 million and $10 million, as well as professional transfers in the range of $10,000 – $1 million.
Nigeria also among leading crypto adopters
The only other representative of an EBRD region among the top 10 crypto adopters, according to figures sourced from the blockchain analytics firm Chainalysis, is Nigeria.
During the same period, it received $59 billion worth of crypto inflows. The African powerhouse falls behind the Eastern European nation in terms of share of the population owning cryptocurrency as well – a little over 5% vs more than 10%, respectively.
“Nigeria, Ukraine and Türkiye stand out with the highest rates of cryptocurrency adoption,” the EBRD pointed out in its report. Turkey ranked 11th in last year’s edition of the Global Crypto Adoption Index published by Chainalysis.
The European Bank for Reconstruction and Development is a multilateral developmental investment bank that helps build market economies in a number of countries, using public funds to finance private projects.
Founded in 1991, the bank initially concentrated on providing support to enterprises in the countries of the former Eastern Bloc, but eventually started funding development initiatives in other regions, too, maintaining a presence in over two dozen countries.
Besides the economies where it’s lending, the London-headquartered EBRD has a diverse group of more than 70 members in regions from North America to Australia, including the United States, its biggest shareholder, and the European Union.
Ukrainian government moves to regulate Bitcoin
Despite the significant crypto activity, Ukraine has yet to legalize cryptocurrencies and comprehensively regulate operations with them in its jurisdiction.
The authorities in Kyiv made their first attempt to do so in early 2022, but Russia’s full-scale invasion, launched in February of that year, delayed the legislative process.
Cryptocurrency usage spiked in the following years, especially after the National Bank of Ukraine (NBU) imposed restrictions on financial transactions to prevent capital flight.
A new draft law, which permits crypto investments and determines their taxation, was later filed with the Verkhovna Rada, Ukraine’s parliament. The tax committee recommended its adoption in April 2025.
In the first week of September, lawmakers approved the bill “On Virtual Assets” on first reading with a sizable majority, as reported by Cryptopolitan.
Members of the Ukrainian fintech industry hope that the legalization of crypto activities will attract foreign investments and result in higher budget revenues for their country.
