Ukraine’s parliament, the Verkhovna Rada, has approved the first reading of a bill to legalize and tax cryptocurrency. The bill passed with 246 votes in favor, introducing a total tax of 23% on crypto profits, an 18% income tax, and a 5% military levy, along with a preferential 5% tax on fiat conversion profits for the first year.
The 23% tax rate follows recommendations made in April by Ukraine’s financial regulators, and is broadly in line with policies seen in crypto-friendly jurisdictions. However, early drafts of the legislation propose to exclude crypto-to-crypto and stablecoin transactions from taxation. This could be a nod to a more flexible framework in the EU and Asia.
While the framework outlines basic rates, the bill leaves several questions unanswered, such as which agency will serve as the main regulator. “I don’t see the point in writing about what’s there for a long time; there will be a lot of changes before the second reading,” said lawmaker Yaroslav Zhelezniak, who announced the bill’s approval via Telegram. “It is still unknown who the regulator will be (NBU or the National Securities and Stock Market Commission).”
The bill will now go through a second reading, where lawmakers are expected to propose significant amendments, especially regarding oversight mechanisms and compliance enforcement.
A Strategic Economic Approach
Along with the regulation, the government is considering cryptocurrency as a means of reviving the economy. Recently, other legislative initiatives have included a crypto asset reserve system and frameworks to encourage repatriation of digital assets held abroad by Ukrainians.
Moreover, If the law is approved in its final form, it may also increase the nation’s attractiveness to fintech companies and cryptocurrency investors. The move also align’s with Ukraine’s aim to legalize cryptocurrency as a sustainable foundation of its post-war economy as it sees increasing digital asset adoption. In 2025, Ukraine ranked eighth globally in the Chainalysis Global Crypto Adoption Index, with robust participation in DeFi and centralized exchange activities, especially among institutional investors.
Also Read: Ukraine Lost Over $10 Billion in Crypto Scams: RUSI Report
