A realistic way to legislatively recognize blockchain records as a proper legal basis

The article outlines a step-by-step European-integrated path for the recognition of blockchain records in Ukraine.

The realistic way to recognize blockchain records as a legally significant basis in Ukraine is through a gradual, hybrid approach. Such an approach combines regulatory flexibility with the harmonization of national legislation with European standards, in particular the requirements of the MiCA regulation.

The Law of Ukraine “On Virtual Assets” No. 2074-IX, adopted in 2022, has not yet entered into force due to the lack of amendments to the Tax Code of Ukraine. A key step forward was the draft law No. 10225-d, adopted in the first reading in September 2025. It proposes a new version of the Law on Virtual Asset Markets, introduces a clear model of taxation of virtual assets starting from January 1, 2026, and also provides for point changes to procedural legislation, in particular to the Criminal Procedure Code of Ukraine.

These amendments are expected to allow the recognition of records in qualified distributed ledger systems (DLT/blockchain) as electronic evidence in criminal proceedings. In addition, they will simplify the mechanisms of seizure, blocking and special confiscation of virtual assets in cases of fraud, money laundering or corruption offenses.

Phased implementation of legal recognition of blockchain records

2025 – launch and expansion of regulatory sandboxes: NBU for fintech, Innovation Sandbox of the Ministry of Digital Transformation and the Ukrainian Startup Fund for AI and blockchain solutions (until October 2026 with possible extensions). In the pilot mode, blockchain records in limited areas (tokenization of property rights, intellectual property, state registries) are given a presumption of authenticity under the supervision of the regulator.

At the same time, the CCP, CPC, CPCU and CAP are being amended to include records from qualified DLT systems in the list of electronic evidence, as well as to establish rules on access to data for the purposes of investigation and confiscation of virtual assets.

2026-2028 – after the comprehensive law enters into force (expected in late 2025 – early 2026), the presumption of the authenticity of qualified blockchain records in all industries will be consolidated, integrated with Diia as a state oracle and gradually extended to civil, commercial and criminal legal relations.

This approach – from a sandbox presumption to full recognition – avoids radical changes to the Civil Code of Ukraine, provides legal certainty and is in line with international best practices (in particular, the EU DLT Pilot Regime, as well as the approaches used in Wyoming, USA). Given the political will and the completion of the legislative process on Draft Law No. 10225-d, Ukraine could become a regional leader in the legal recognition of blockchain technologies by 2028.

Integration with registries through pilot projects

The Blockchain Estate Registry (BER) initiative, developed by the NGO Virtual Assets of Ukraine in cooperation with the parliamentary group Blockchain4Ukraine and the Ministry of Digital Transformation of Ukraine, is testing the transition from traditional registries (including the State Register of Real Property Rights) to blockchain systems. Entries in such systems become legally binding after notarization using a qualified electronic signature (QES) compliant with the requirements of the EU eIDAS regulation. The pilot projects already cover land and property rights, with plans for further expansion in 2026-2027.

Lobbying and consulting support

The Ministry of Digital Transformation of Ukraine, together with Blockchain4Ukraine, is promoting relevant legislative initiatives through public discussion mechanisms, tenders for operators, and the implementation of sandbox models for virtual assets by October 2026. The goal of these measures is to fully integrate the Ukrainian virtual asset market into the European legal space by 2027.

This path is realistic given the existing experience of implementing digital public services, including the Diia platform, but it also requires overcoming tax and regulatory barriers. Given a sustained political will, Ukraine has the potential to become a leader in blockchain regulation in the region, while maintaining a balance between innovation and legal security.

Stakeholders to be involved in the process

To effectively recognize blockchain records as legally significant in Ukraine, it is key to engage multilateral stakeholders to ensure a balance of interests, compliance with international standards, and practical implementation. This will help avoid mistakes similar to those made in countries with over-regulation and speed up integration with Diia and state registries.

Key stakeholders include:

– Government agencies: The Ministry of Digital Transformation (MinDigit) and the Ministry of Justice to coordinate pilot projects; regulators such as the NBU (Regulatory Sandbox for Fintech on Blockchain) and the NSSMC to oversee virtual assets; and lawmakers from the Verkhovna Rada (Committee on Digital Transformation) to amend laws No. 2074-IX and No. 10225-d.

– The business sector: startups, crypto exchanges, and developers (e.g., NGO Virtual Assets of Ukraine); associations such as the Blockchain Association of Ukraine for expertise and lobbying to avoid barriers to innovation; private registry operators for testing solutions.

– Judiciary: The Supreme Court and specialized courts (anti-corruption, commercial) – to develop the practice of recognizing blockchain evidence, especially in cases related to virtual assets or AML.

– International partners: EU – for harmonization with MiCA (expected by 2027); GFIN (NBU has been a member since 2019) – for fintech cooperation; FATF and UN – for AML/CFT standards; donors such as Eurasia Foundation or UK Aid – to fund pilot projects, such as BER.

Additionally, it is important to involve the academic community (the National Academy of Sciences of Ukraine, universities such as KNU and KPI) for scientific research on risks, such as 51% of attacks, and civil society (NGOs such as Transparency International) to monitor anti-corruption aspects and receive feedback from users and investors.

Engagement through working groups, consultations, and memoranda (as in the BER or Diia.City projects) will ensure a comprehensive and inclusive approach with the potential to finalize key legislative and regulatory changes by 2028.

How to avoid the risks of abuse of excessive regulation

The balance between minimizing the risks of abuse and preserving space for innovation in the regulation of blockchain technologies and virtual assets is achieved through the use of flexible, risk-based approaches that simultaneously protect the public interest and do not hinder technological development.

Risks associated with fraud, money laundering, terrorist financing, or loss of assets by investors are contained through mandatory compliance with AML/KYC standards, continuous monitoring of transactions in accordance with FATF recommendations for virtual assets, mechanisms for confiscation and blocking of assets in criminal proceedings, and the use of modern technologies for automated detection of suspicious transactions. In addition, there is a gradual transition to energy-efficient consensus mechanisms, such as Proof-of-Stake, which significantly reduces the environmental impact of the technology.

At the same time, innovation is supported by the principle of “same activities, same risks, same regulatory consequences” that underpins MiCA in the European Union. Regulation is tailored to specific asset types and use cases, from stablecoins and DeFi to tokenized assets and NFTs. The industry is given the opportunity to independently develop and adhere to codes of conduct and best practices, as well as to actively use compliance technologies (RegTech) to ensure compliance without excessive administrative burden.

The main instruments of such a balance are regulatory sandboxes that allow testing new solutions under the supervision of the regulator without full regulatory pressure in the early stages, international coordination within IOSCO, FATF and GFIN to harmonize approaches and avoid regulatory arbitrage, as well as regular review of the regulatory framework in view of new technological risks and opportunities. It is this approach, which is demonstrated by the EU (MiCA and DLT Pilot Regime), Ukraine (NBU sandbox and Innovation Sandbox of the Ministry of Digital Transformation) and individual jurisdictions such as the UK or Singapore, that allows to ensure a high level of protection without blocking the development of distributed ledger technologies.

Potential for pilot legal regimes

The potential for pilot legal regimes (regulatory sandboxes) in the field of digital recording of intellectual property (IP) in Ukraine is significant and is already being implemented in practice.

In June 2025, the Ministry of Digital Transformation of Ukraine, together with the Ukrainian Startup Fund, launched the Innovation Sandbox, a pilot program for artificial intelligence (AI) and blockchain startups. This sandbox operates as an experimental space until October 2026 (with possible extension and formalization into a permanent instrument), where companies receive free product audits, individual consultations, and recommendations on legal, business, and technical aspects.

Particularly relevant for IP, the program includes a comprehensive analysis of intellectual property – patentability assessment, enforcement strategy, implementation of Privacy by Design and Privacy by Default, as well as recommendations on IP asset management for scaling to international markets. It is ideal for testing IP tokenization, for example through NFTs to capture rights to creative content, patents, inventions or digital assets, with government oversight and without the full regulatory burden in the early stages.

This approach is similar to the successful BER (Blockchain Estate Registry) pilots for real estate, where blockchain records become legally binding after notarization. In the field of IP, the sandbox allows for safe experimentation with tokenization in the healthcare, education, agriculture, defense, and digital economy sectors, where innovations require reliable rights registration.

This is in line with European standards (EU AI Act, MiCA) and contributes to the formation of future regulations based on real cases, accelerating the development of innovations without compromising legal security. If the program proves to be effective, it could become the basis for a specialized sandbox specifically for digital IP, turning Ukraine into a regional hub for blockchain protection of intellectual assets.

Oleksiy Shevchuk
Head of the Ukrainian National Lobbyists Association