- Ukraine’s parliament approved a bill to legalize and tax cryptocurrency with strong support.
- The bill sets an 18% income tax and a 5% military tax on crypto profits.
- Ukraine ranks eighth globally in crypto adoption and aims to boost its digital economy.
The Verkhovna Rada, the parliament of Ukraine, passed a bill to legalize and tax cryptocurrencies by the first reading. The vote was very strong with 246 members supporting it. This is a major move towards regulating the digital asset market in a nation whose rank is among the leading adopters of crypto.
The draft legislation proposes an 18% income tax on crypto profits, along with a 5% military tax. Additionally, it introduces a temporary 5% tax rate on fiat conversions during the bill’s first year. This combined 23% tax rate aligns with recommendations made by Ukraine’s financial regulator earlier this year. The bill also excludes crypto-to-crypto and stablecoin transactions from taxation initially, moving Ukraine closer to models seen in crypto-friendly nations.
Regulatory Context and Next Steps
Ukraine’s move to regulate crypto follows ongoing legislative efforts this year. Earlier this year, lawmakers proposed a bill to create a crypto asset reserve under the National Bank of Ukraine. This could position Ukraine as the first European country to hold a state-operated Bitcoin reserve. The recent vote, however, only covers the first reading. Further changes are expected before the second reading, including decisions on the regulatory authority overseeing the market, which remains undecided between the central bank and the securities commission.
The approval of the bill comes at a time when Ukraine is trying to restore its economy following the fight. The government is trying to establish an easy legal framework that will promote investment and formal involvement in crypto markets. The bill is an indication of increasing awareness of digital assets as one of the major components of the Ukrainian financial future.
Ukraine’s Position in the Global Crypto Landscape
According to Chainalysis, Ukraine ranks eighth worldwide in crypto adoption for 2025. The country performs especially well in centralized crypto value received by both retail and institutional investors. It also holds a significant place in decentralized finance (DeFi), an area gaining momentum in Eastern Europe.
The proposed tax framework aims to balance revenue generation with supporting crypto innovation. Analysts see the bill as opening opportunities to attract foreign investments and repatriate assets held by Ukrainian crypto users abroad. This could help boost economic recovery and market modernization.
Global Trends in Crypto Taxation
Ukraine’s crypto tax initiative follows similar moves by other countries. Denmark recently proposed taxing unrealized crypto gains as part of its broader tax reform. Brazil ended a crypto tax exemption and introduced a flat 17.5% tax on crypto profits starting mid-2025. Meanwhile, the U.S. is preparing legislative hearings on developing a formal crypto taxation framework.
As governments worldwide respond to the growing crypto market, Ukraine’s bill signals its intent to become a recognized player in digital asset regulation. The country awaits the bill’s second reading, which will shape the future of crypto taxation and legalization.
