Declaring Cryptocurrency: NACP Explains How to Properly Report Digital Assets

The National Agency on Corruption Prevention (NACP) has provided detailed guidance on how to declare cryptocurrency assets in electronic asset declarations. Digital assets must be reported in the section “Intangible Assets,” with careful attention to both technical and legal requirements.

How to indicate the type of cryptocurrency
Declarants must select the specific cryptocurrency from the available list in the declaration form. If the required asset is not listed, they should choose “Other” and specify both the full and abbreviated name of the cryptocurrency (for example, Bitcoin (BTC), Ethereum (ETH), or other tokens). To avoid errors, it is recommended to use reliable market data aggregators.

Reporting the quantity
The “Quantity” field must contain the exact number of coins or tokens held as of the last day of the reporting period. Importantly, this number should not be rounded. Since cryptocurrency holdings may change due to trading or conversions, declarants are advised to keep transaction histories or exchange reports as supporting evidence.

Determining the acquisition date
If cryptocurrency was acquired through multiple transactions, the declaration should reflect the date of the most recent transaction. Earlier transactions can typically be verified באמצעות blockchain records or exchange-generated reports.

How to calculate the value
The value of cryptocurrency must be reported in Ukrainian hryvnias and can be determined based on:

• actual expenses incurred when purchasing with fiat currency;
• market value at the time of exchange or conversion;
• historical price data from specialized platforms in cases such as mining or peer-to-peer transactions.

If assets were acquired in foreign currency, their value must be converted into hryvnias using the official exchange rate of the National Bank of Ukraine at the time of the transaction.

Public address as a key identifier
A crucial element of the declaration is the public address (wallet identifier) of the cryptocurrency. This unique blockchain address allows verification of ownership and tracking of transactions. Declarants are encouraged to copy the address directly from their wallet interface to avoid errors.

Service providers and wallets
It is also necessary to indicate the service provider associated with the cryptocurrency. This may include a crypto exchange (such as Binance or similar platforms) or a digital wallet (e.g., MetaMask, Trust Wallet, or hardware wallets).

Additional reporting requirements
Funds received from the sale of cryptocurrency are considered income and must be declared in the relevant section. Likewise, significant expenses related to acquiring digital assets must also be disclosed.

The NACP emphasizes that proper declaration of cryptocurrency is not merely a technical formality. It requires careful documentation and transparency, as it forms part of broader anti-corruption compliance and financial accountability obligations.