Ukraine's parliament, the Verkhovna Rada, will review a comprehensive cryptocurrency regulation bill in late August 2025, marking a pivotal step toward formalizing the country's digital asset market. Spearheaded by Danylo Hetmantsev, head of the parliamentary finance committee, the legislation aims to establish a legal framework for cryptocurrencies, aligning with EU standards like MiCA while addressing years of regulatory uncertainty.
The bill includes a tax mechanism requiring a 5% income tax plus 5% military duty (totaling 10%) on profits from crypto-to-fiat conversions for legalized holdings, though crypto-to-crypto trades and stablecoins may be exempt. This approach balances revenue generation with innovation incentives.
Notably, Ukraine holds 46,351 BTC (worth $5.4 billion) – the fourth-largest government Bitcoin reserve globally – and recently empowered its central bank to hold cryptocurrencies in national reserves. The legislation could position Ukraine as Eastern Europe's regulated crypto hub by reducing fraud risks through clear legal standards and regulatory oversight.
If passed, the bill may catalyze broader institutional adoption, building on Ukraine's $499 billion crypto inflows between July 2023-June 2024. Implementation challenges remain, including coordination with the National Bank and IMF.