Ukraine’s unregulated crypto market is fertile ground for criminals, corrupt officials, and Russian saboteurs to exploit, but proper legislation could help the state recover at least $10 billion in lost tax revenue and stolen funds annually, according to a new report from the Royal United Services Institute (RUSI), a think tank.

The country has one of the highest rates of cryptocurrency ownership in the world, with 16% of the population holding crypto or other virtual assets before the war, which is on par with the U.S. But the market operates in the shadows — legal to own but not recognized as legal tender — meaning billions of dollars are exchanged in crypto each year without being taxed.

Regulation is needed to help law…