Ukraine Moves Forward with Cryptocurrency Legalization

Ukraine is on a path towards clearer regulations for cryptocurrency, thanks to a new bill focused on legalization and crypto taxation.

Key Takeaways

The Ukrainian parliament, or Verkhovna Rada, has passed a significant bill to legalize and regulate cryptocurrency.
The bill received substantial support, passing with 246 votes in favor and only 31 against.
Proposed taxes on crypto profits include an 18% general rate and a temporary 5% rate on fiat conversions.
This legislation reflects Ukraine's growing interest in integrating cryptocurrency into its economy.
The second reading of the bill is anticipated in the coming months, paving the way for further developments.

The Ukrainian parliament has approved a bill that could significantly reshape the country's crypto landscape, making it easier for individuals and businesses to navigate the digital economy. The proposed law outlines a new tax structure and aims to provide operational clarity for cryptocurrency transactions amid ongoing geopolitical challenges.

Legislative Developments in Ukraine's Crypto Sector

On Wednesday, members of the Ukrainian parliament voted on a critical piece of legislation aimed at enhancing regulatory clarity in the country's expanding cryptocurrency sector. Lawmaker Yaroslav Zhelezniak noted that this advancement highlights Ukraine's increasing interest in incorporating cryptocurrency into its economic framework.

This initial vote was overwhelmingly supported, with 246 votes for and only 31 against, indicating a broad willingness among lawmakers to embrace digital innovation, even amidst the ongoing conflict with Russia. The passage of this bill is a step toward creating a structured environment for individuals and businesses to safely and confidently engage with cryptocurrencies.

For many Ukrainians, this bill signifies more than just clearer regulations; it also has important implications for the taxation and trading of digital assets. The proposed law includes an 18% tax on crypto profits, alongside a temporary 5% tax rate for the first year on conversions to fiat currency, giving traders and investors some breathing room.

The suggested 23% tax aligns with recommendations made by the country's Securities and Exchange Commission (SEC) earlier this year, although the initial proposal did exclude transactions involving cryptocurrencies exchanged for one another or stablecoins. This adjustment brings Ukraine closer to adopting crypto-friendly tax models.

Further modifications to the bill are anticipated. Zhelezniak mentioned, “I don’t see much point in going into detail now; there will be many changes before the second reading,” signifying potential changes ahead.

As Ukraine continues to recover from the impact of the Russian invasion, its focus on cryptocurrency has intensified. The nation is leading in crypto adoption, ranking 8th globally according to the Chainalysis 2025 Global Crypto Adoption Index, a testament to its vibrant digital asset culture despite significant geopolitical tensions.

This bill builds on prior efforts made in 2022 when regulatory initiatives were halted due to the invasion. Nonetheless, the momentum for crypto regulation in Ukraine persists. In June 2025, lawmakers introduced a proposal to add virtual assets to the National Bank of Ukraine's foreign currency reserves, potentially positioning Ukraine as the first European nation to establish a state-operated Bitcoin reserve.

As the country awaits the second reading of this vital bill, expected in the coming months, full cryptocurrency legalization and the establishment of a dedicated crypto reserve will place Ukraine at the forefront of digital asset regulation in Europe, opening up new avenues for international investment and digital innovation.