Should you use cryptocurrency for transfers?

In today's world, where millions of Ukrainians live in diaspora, the issue of effective and affordable ways to transfer money home remains extremely relevant. This is especially true for Ukrainians living in Calgary and other cities in Canada. With the emergence of cryptocurrencies as an alternative method of international remittances, many people are considering whether to use digital assets to send money to Ukraine.

Legal status of cryptocurrencies in Ukraine

Ukraine is currently in the process of actively developing a legislative framework for the regulation of crypto assets. In 2022, President Volodymyr Zelensky signed the Virtual Assets Act, which created the legal basis for the cryptocurrency market. However, the full implementation of this law is still ongoing.

Key features of the current legal status:

  • Cryptocurrencies are not recognized as legal tender in Ukraine, but their possession, trading, and private transactions are permitted.

  • The National Bank of Ukraine has clearly stated that virtual assets “cannot be a means of payment” and must not undermine the effectiveness of monetary policy.

  • Full legalization of cryptocurrencies is expected by October 2025 with the introduction of a comprehensive regulatory regime

  • A 23% tax on income from cryptocurrency transactions is planned (18% income tax + 5% military levy)

Cost comparison: traditional transfers vs. cryptocurrencies

Traditional ways to transfer money from Canada to Ukraine

Western Union:

  • To transfer $1,000: commission from $13 (from a bank account) to $49 (by debit card)

  • To transfer $3,000: commission from $16 to $150 depending on the payment method

  • Interest rate: from 1.3% to 4.9% of the transfer amount

MoneyGram:

  • For transfers of $1,000: commission from $4.99 to $34.99
  • Overall lower commissions compared to Western Union
  • Interest rate: from 0.5% to 3.5%

MEEST (specialized service for Ukraine):

  • Fixed commission of 2% for amounts over $1,000
  • For transfers of $1,000: commission of $23 to PrivatBank
  • Option of cash delivery to your home for an additional fee

RemitBee:

  • Free transfers for amounts over 500 Canadian dollars
  • $2.99 commission for smaller amounts
  • Competitive exchange rates

Bank transfers (CIBC, Scotiabank):

  • $0 commission for transfers via CIBC Global Money Transfer
  • Scotiabank is offering $0 commission from May to October 2025
  • However, banks typically apply less favorable exchange rates

Cost of cryptocurrency transfers

Network fees (under ideal conditions):

  • Bitcoin: approximately $1.50 per transaction
  • Ethereum: approximately $0.75 per transaction
  • Stablecoins (USDT-TRC20, USDC on Stellar): less than $0.01 per transaction

Actual cost including exchange transactions:

  • Total range: 2–5% of the transfer amount
  • This includes fees for purchasing cryptocurrencies, network fees, and conversion to hryvnia
  • For large amounts, the relative cost may be significantly lower

Advantages of using cryptocurrencies for transfers

Transaction speed

Cryptocurrency transfers can be completed in minutes or hours, unlike traditional bank transfers, which can take from several hours to 3–5 days. Transactions via stablecoins are particularly fast.

Potential cost savings

For large amounts, cryptocurrencies can offer significant savings. The global average cost of traditional transfers is 6.2%, while cryptocurrency transfers cost 2–5%.

Accessibility for the unbanked

All you need is a mobile phone with internet access and a cryptocurrency wallet.

Transparency and traceability

Blockchain provides transparency and the ability to track transactions in real time.

Significant risks and drawbacks

Price volatility

High volatility can lead to loss of value during transfers. Even stablecoins are not always stable.

Regulatory risks and uncertainty

The legal framework in Ukraine is still evolving. Policy changes and restrictions are possible.

Technical complexity and security risks

Technical knowledge is required. Errors in wallet addresses result in irreversible loss of funds. Hacker attacks are possible.

The most common reasons for crypto wallet blocking:

  • Suspicion of unauthorized access
  • Violation of exchange rules
  • Suspicion of money laundering
  • Refusal to verify

Liquidity and conversion issues

Possible limited liquidity or unfavorable exchange rates in Ukraine.

Taxation and reporting

From 2025 — 23% tax on income from crypto transactions.

Security and fraud prevention

Ukraine is actively closing illegal exchanges. It is recommended to use only licensed platforms.

Practical recommendations

When cryptocurrencies may be appropriate:

  • Large amounts (over $3,000–5,000)
  • Urgent transfers
  • Regular transfers for experienced users
  • No access to banking services

When traditional methods are preferable:

  • Small amounts (up to $1,000)
  • One-time transfers without experience in crypto
  • Transfers for people who are not tech-savvy
  • Need for exchange rate stability

The safest approach:

  • Use stablecoins
  • Choose a licensed platform
  • Test with a small amount
  • Document transactions for reporting
  • Hybrid approach — cryptocurrencies + traditional methods

Future prospects

By October 2025, a full regulatory regime and MiCA standards are planned to be implemented. The creation of a national Bitcoin reserve is being considered.

Conclusion

The choice between cryptocurrencies and traditional services depends on the amount, urgency, experience, and willingness to take risks. Cryptocurrencies are suitable for experienced users and large transactions, while traditional services are suitable for most everyday transfers. It is best to combine both methods to minimize risks and reap the benefits of each.