Ukraine's parliament, the Verkhovna Rada, has taken a significant step toward cryptocurrency regulation by passing the first reading of a bill to legalize and tax digital assets. The legislation received strong parliamentary support with 246 lawmakers voting in favor of the proposal.
The draft legislation outlines a comprehensive tax framework for cryptocurrency profits, proposing an 18% income tax along with an additional 5% military defense tax, bringing the total proposed taxation rate to 23%. Notably, the bill includes a preferential 5% tax rate on fiat conversions during its first year of implementation, providing some relief during the transition period.
This move aligns with Ukraine's position as a global leader in crypto adoption, ranking eighth worldwide in Chainalysis's 2025 Global Crypto Adoption Index. The country demonstrates particularly strong performance in centralized value received across both retail and institutional categories, as well as in DeFi value received.
Lawmaker Yaroslav Zhelezniak, who announced the development, cautioned that "there will be many changes before the second reading" and noted that the specific regulatory authority (either the National Bank of Ukraine or the National Securities and Stock Market Commission) remains undetermined.
The proposed tax framework follows the April recommendation of Ukraine's financial regulator and positions the country alongside other nations developing crypto taxation policies, including Denmark, Brazil, and the United States.