Ukraine Advances Bill to Legalize and Tax Cryptocurrency

• Lyla Velez
• September 4, 2025
• Policy
• 0 Comments

Parliamentary Approval

Yaroslav Zhelezniak, a member of parliament, announced the draft’s approval with 246 votes in favor. Emphasizing the bill’s initial support, Zhelezniak noted that further amendments are likely. Danylo Hetmantsev explained that specific tax rates include a general tax of 18% on income with an additional 5% military tax.

The bill passed its first reading with overwhelming support, but significant amendments are likely before the second reading. — Yaroslav Zhelezniak

Implications for the Crypto Market

The bill aims to increase government revenue by taxing crypto profits, a significant move in Ukraine’s fiscal landscape amid ongoing geopolitical tensions. It introduces new compliance demands for crypto users and businesses but could promote long-term market growth.

With the bill granting legal status to cryptocurrencies as digital property, significant shifts in Ukraine’s crypto landscape could occur. Users and exchanges may need to navigate changed reporting obligations and compliance issues, impacting market dynamics.

Global Alignment and Future Prospects

Officials expect the reforms to align Ukraine with global practices seen in countries like El Salvador. The law’s progression suggests possible implications for growing on-chain activities and increased transparency in digital finance.

The law is still in draft form, but its potential to alter regulatory landscapes is clear. Ukraine may see enhanced investment in crypto markets, aligning with blockchain technology’s expanding global presence, influencing economic and technological trajectories.