The legislation defines virtual assets as digital property existing through blockchain technology without legal tender status.
Ukraine Crypto News
Ukraine's Verkhovna Rada passed cryptocurrency legalization and taxation legislation in the first reading on Wednesday with overwhelming support from 246 lawmakers. The bill establishes an 18% income tax and 5% military tax on virtual asset profits.
Lawmaker Yaroslav Zhelezniak announced the vote results, noting only one parliament member rejected the proposal out of 321 present during the session. The legislation defines virtual assets as digital property existing through blockchain technology without legal tender status.
The draft sets preferential 5% tax rates on fiat conversions during the first year after implementation. Virtual assets would be treated as movable property under civil law rather than recognized currency in Ukraine.
Ukraine ranks eighth globally in Chainalysis's 2025 Global Crypto Adoption Index, with approximately 16% of the population holding crypto assets before 2022. The country scores particularly high in both centralized value received and DeFi adoption metrics.
The National Bank of Ukraine will oversee virtual asset market supervision according to current provisions. A second regulator remains undetermined but will receive broad enforcement powers including asset freezing and property seizure authority.
Crypto-to-crypto transactions and sales below minimum wage thresholds would remain tax-exempt under the proposed framework. Income from digital coins obtained without payment also receives exemption status.
WhiteBIT CEO Volodymyr Nosov called this "a window of opportunity for attracting crypto investments and repatriating foreign assets of Ukrainian crypto enthusiasts." The legislation aims to modernize markets while generating revenue for the economy.
Further amendments are expected before the bill's second reading as parliament continues to advance crypto legislation throughout 2025. The country previously attempted regulation in early 2022 before geopolitical tensions escalated.
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