Ukraine’s parliament, Verkhovna Radais is planning to advance cryptocurrency legalization by passing a bill to tax digital assets.
According to parliamentarian Yaroslav Zhelezniak, the legislation garnered 246 votes in favor, at the first reading.
Zhelezeniak believes the new law has the potential to shape Ukraine’s digital asset economy.
He says the bill helps position Ukraine’s tax framework closer to those of crypto-friendly nations.
“This is a pivotal moment for Ukraine to harness the economic potential of cryptocurrencies,” Zhelezniak wrote.
However, he noted that significant revisions are expected before the bill’s second reading.
Ukraine is ranked among the global leaders in cryptocurrency adoption.
A bill for Crypto Legalization
The draft law introduces a structured taxation system for digital asset profits.
It proposes an 18% income tax and a 5% military tax on digital assets.
Additionally, to incentivize early adoption, it includes a temporary 5% tax rate on cryptocurrency-to-fiat conversions during its first year of implementation.
This combined 23% tax rate aligns with recommendations made by Ukraine’s financial regulator in April 2025.
The recommendations also exempted crypto-to-crypto transactions and stablecoin activities.
Nevertheless, whether the National Bank of Ukraine (NBU) or the National Securities and Stock Market Commission will serve as the regulator, remain undecided.
A growing Crypto Hub
Decentralized finance (DeFi) activity is gaining major popularity in Eastern Europe.
Ukraine too is trying to capitalize on its crypto-friendly environment to attract investment for economic recovery.
The Verkhovna Rada has been actively pushing crypto legislation throughout 2025.
In June, Ukrainian lawmakers introduced a bill to establish a crypto asset reserve.
Meanwhile, Ukraine’s is also part of a global trend toward regulating and taxing cryptocurrencies.
In June 2025, Brazil introduced a 17.5% flat tax on crypto gains, ending a previous exemption to boost government revenue.
Meanwhile, in July 2025, the United States held hearings to explore a comprehensive crypto taxation framework, reflecting growing global acceptance.
The Democrats however keep pushing for stricter laws.
