4-9-2025 – Ukraine’s Verkhovna Rada passed the first reading of a bill to legalize and tax cryptocurrencies on Wednesday, a significant step toward regulating the country’s booming digital asset economy, according to lawmaker Yaroslav Zhelezniak. The legislation, supported by 246 lawmakers, aims to establish a framework for taxing crypto profits and fostering investment.
The bill proposes an 18% income tax and a 5% military tax on digital asset profits, with a temporary 5% preferential rate for fiat conversions in its first year, as announced by Zhelezniak on Telegram. This aligns with recommendations from Ukraine’s financial regulator in April, which exempted crypto-to-crypto and stablecoin transactions.
Ukraine, ranked eighth in Chainalysis’s 2025 Global Crypto Adoption Index, is a leader in centralized and DeFi value received, making this legislation pivotal for its crypto market. The move reflects Ukraine’s push to integrate digital assets into its economy, following a June bill to create a crypto asset reserve. Volodymyr Nosov, CEO of WhiteBIT, said that the legislation could attract investment and modernize Ukraine’s market.
Globally, countries like Denmark and Brazil are also advancing crypto tax policies, signaling broader acceptance of digital assets. Details of the regulator—whether the National Bank of Ukraine or the National Securities and Stock Market Commission—remain undecided, with amendments expected before the second reading. Observers will watch for updates on the bill’s final structure and its impact on Ukraine’s crypto ecosystem.
