Legalization of cryptocurrency in Ukraine: legal concepts

Ukrainian legislation recognizes the existence of so-called "digital things". What it is? It's anything we can create and store online that has value.

Examples can be files like music or apps, and even online games and cryptocurrencies like Bitcoin.

Yes, if you have created or own something digital that has value, it is legally your property. This is defined in Articles 177 and 179-1 of the Civil Code of Ukraine.

The law sets the rules that these digital things can be sold, bought, transferred to other people, or even bequeathed.

If someone infringes on your digital asset, you can seek protection in court, just as you would with any other property you own.

Understanding digital things

"Digital things" include:

• Virtual assets -for example, cryptocurrencies like Bitcoin, Ethereum, and other tokens that can be traded online.
• Digital content- this is everything that is created in digital format. For example, apps, music, movies, games, and e-books.
• Other benefits in the digital environment- anything created online that has value.

This idea makes it easier to manage digital things, protect rights to them, and make their exchange or sale easier and safer.

The law is trying to move beyond the traditional understanding of property and adapt to the digital age, recognizing the value of what exists online.

Let's take a closer look:

The legislative consolidation of the concept of digital things in the Civil Code of Ukraine ensured the relationship of digital things to the objects of civil rights, and also determined the existing features, for example, the digital form of existence and the presence of property value, and also determined the application of the provisions of the Civil Code on things, unless otherwise established The Civil Code, the law or does not follow from the essence of a digital thing.

In simple terms, this means that the owners of digital things have gained the ability to enter into agreements with digital things, such as buying, selling and bequeathing, and to protect such ownership of digital things at the legal level, for example, by applying to law enforcement agencies or to the courts.

Undoubtedly, such transactions existed before the regulatory consolidation, but the changes to the Central Committee unified and consolidated the existing approaches at the legal level, which will also contribute to the formation of approaches to understanding digital things among the judicial system and government bodies, as well as limit abuses in the market that arose due to the existence "gray zone".

Legislation also defines the list of digital things, referring to them:

• Virtual assets

In the absence of a specific law on the regulation of virtual assets, in accordance with the Law "On Prevention and Combating the Legalization (Laundering) of Criminal Proceeds, Financing of Terrorism and Financing of the Proliferation of Weapons of Mass Destruction", a virtual asset is a digital expression of the value that can be traded in digital format or transfer and which can be used for payment or investment purposes.

That is, Bitcoin, Ethereum, and USDT - are covered by the definition of digital things (virtual assets).

• Digital content

According to the Law "On Digital Content and Digital Services", which entered into force on March 2, 2024, digital content is data that is created and provided in digital form.

Digital content includes, in particular, computer programs, applications, video files, audio files, music files, digital games, and e-books."

• Other goods that are created exist exclusively in the digital environment and have property value.

Conclusions

Therefore, Ukrainian legislation recognizes the existence of so-called "digital things", which include cryptocurrencies. This includes anything we can create and store online that has value.

The law sets the rules that these digital things can be sold, bought, transferred to other people, or even bequeathed. If someone infringes on your digital asset, you can seek protection in court, just as you would with any other property you own.

This concept allows us to say that digital things exist in the legal field and that Ukrainians have ways to protect their rights.

If you need advice on the legalization of cryptocurrency - contact the legal company "Prikhodko and Partners", we will be happy to help you choose the most optimal options for working with cryptocurrencies and regulating virtual assets according to your request, and we will help support the process of buying, selling or exchanging for fiat funds , in Ukraine and abroad.