The legalization of the virtual assets market in Ukraine may boost the country’s technological capabilities and allow more people to financially support urgent reconstruction projects. Yet, the financial system needs to adapt to the new challenges the country is likely to face. 

In the lead-up to the second anniversary of the Russian invasion of Ukraine, RUSI’s Centre for Finance & Security (CFS), as part of the Supervising and Monitoring Ukraine’s Reconstruction Funds (SMURF) project, convened a roundtable in Brussels on how to bolster Ukraine’s financial system as it responds to military threats, develops financial resilience and manages reconstruction. It brought together the private and public sectors to discuss the way forward for Ukraine.

CFI researcher Oksana Ihnatenko stressed the potential advantages of virtual assets for Ukraine, despite some financial crime concerns. Yurii Gaidai, a Senior Economist at the Centre for Economic Strategy, focused on three cornerstones of fighting financial crime in the Russo-Ukrainian War: combating budget losses, recovering spending and undermining Russia’s capability to fight the war.

The discussions underlined that efforts to support Ukraine’s financial integrity need strong institutions and a new approach to relations between the state and its citizens.