Ukraine’s parliament has passed the first reading of a cryptocurrency legalization and taxation bill. According to lawmaker Yaroslav Zhelezniak, the bill was passed with 246 members voting in support. The bill aims to set clear rules for taxation and is yet to be signed into law.
What Does Ukraine’s Cryptocurrency Legalization Bill Propose?
According to the draft bill, the state will impose an income tax of 18% and a military tax of 5% on digital asset portfolios. The bill also mentions a 5% tax on fiat conversions for the first year. This figure may increase from the second year onwards.
The cryptocurrency legalization bill is still far from its final form. Lawmakers may make required changes to the legislation over the coming weeks. Zhelezniak stated, “I don’t see much point in going into detail now, there will be many changes before the second reading.“
Zhelezniak also said that it is still unclear which agency will be responsible for overseeing the cryptocurrency sector. It may fall under the NBU or the National Securities and Stock Market Commission.
More Crypto Adoption For Ukraine?
Ukraine is ranked among the highest in the global cryptocurrency adoption rate. The country took the eighth spot in Chainalysis’s 2025 Global Crypto Adoption Index. According to another report, about 16% of the population held cryptocurrencies before Russia’s full-scale invasion.
If Ukraine’s cryptocurrency legalization bill is signed into law, it may lead to more people getting into digital assets. However, taxation may lead to people opting for other assets. There is a possibility that the 5% tax on fiat conversions may increase in the second year. This aspect of the bill may rub crypto enthusiasts the wrong way.
Also Read: Ukraine Bill: Central Bank to Hold Bitcoin, Crypto in Reserves
The crypto industry in Ukraine has largely operated without regulations. Billions of dollars worth of transactions go under the tax radar. The move may be a way for the Ukrainian government to increase its income to fuel its war with Russia.