Ukraine is making strides towards clearer crypto regulation with a new bill focused on legalization and crypto taxation. The recent development in the Ukrainian parliament, the Verkhovna Rada, marks a significant step towards providing a structured environment for the integration of cryptocurrencies into the country’s economy.
The first reading of the bill was overwhelmingly passed with 246 votes in favor and only 31 against, signaling strong support for digital innovation in Ukraine. This move comes at a crucial time for the country, as it aims to recover and rebuild post the destruction caused by the Russian invasion. Despite the ongoing conflict, Ukraine is showing a keen interest in embracing digital assets and creating a conducive environment for individuals and businesses to engage with cryptocurrencies.
The proposed bill introduces an 18% tax rate on crypto profits, with an additional 5% tax on crypto profits and a temporary 5% tax rate for fiat conversions in the first year. These tax regulations aim to provide clarity and transparency in the taxation and trading of digital assets within the country. The bill is a significant step towards aligning Ukraine with crypto-friendly tax models and fostering a supportive environment for crypto traders and investors.
Ukraine’s growing position as a global leader in crypto adoption is further solidified by these regulatory developments. The country has been recognized for its strong digital asset culture, ranking 8th in the Chainalysis 2025 Global Crypto Adoption Index. Despite the geopolitical challenges, Ukraine’s momentum towards crypto regulation has remained strong, with previous initiatives to add virtual assets to the foreign currency reserves of the National Bank of Ukraine.
Looking ahead, Ukraine anticipates the second reading of the bill in the coming months, which could pave the way for full legalization of cryptocurrency and the establishment of a special crypto reserve. This would position Ukraine at the forefront of digital asset regulation in Europe, opening up new opportunities for international investment and digital innovation.
In conclusion, Ukraine’s progress towards clearer crypto regulation demonstrates its commitment to embracing digital innovation and fostering a supportive environment for the crypto sector. The upcoming developments in crypto legalization and taxation could further enhance Ukraine’s position as a global leader in crypto adoption and regulation.