Bitcoin News Today: Ukraine Eyes Crypto Legalization as New Tax Framework and Regulatory Bill Near First Reading

Ukraine is preparing to take a significant step toward formalizing its cryptocurrency market, with the Verkhovna Rada expected to conduct the first reading of a new regulatory bill by late August 2025 [3]. The proposed legislation aims to establish a legal and tax framework for digital assets, aligning with European regulatory standards and bringing long-discussed crypto policies closer to implementation. This move follows a pattern of intermittent progress in the country’s approach to cryptocurrency, with prior efforts dating back to 2022 when crypto exchanges were legalized [3].

According to Danylo Hetmantsev, head of the parliamentary committee on finance, tax, and customs policy, the draft bill is currently in the final stages of preparation [3]. A key feature of the legislation is a provision allowing individuals to legalize previously acquired digital assets. To do so, holders will be required to pay a 5% personal income tax and an additional 5% military contribution [3]. This measure reflects a broader government initiative to integrate crypto into the formal economy while supporting national defense efforts.

The draft bill also includes proposals to tax cryptocurrency trading in a manner similar to securities, with taxes levied when assets are converted into fiat currency [3]. Earlier this year, in April 2025, Ukraine’s financial regulator proposed a 23% tax on certain crypto transactions, though it excluded crypto-to-crypto and stablecoin transfers from the scope [3]. These developments indicate a gradual but deliberate shift toward a more structured and transparent regulatory environment.

Ukraine’s approach is not limited to taxation. In June 2025, legislators introduced a bill that would permit the National Bank of Ukraine (NBU) to include cryptocurrencies such as Bitcoin in its official reserves. This proposal was announced during a conference in Kyiv in May and highlights Ukraine’s interest in exploring the strategic value of digital assets [3]. Currently, Ukraine is the fourth-largest holder of Bitcoin among governments, with holdings amounting to 46,351 BTC valued at $5.4 billion [3].

The NBU has also emphasized the importance of regulatory clarity and the need to maintain central bank authority. Governor Andriy Pyshnyy stated that while the government is open to legalizing crypto assets, they will not be recognized as legal tender. Instead, the NBU is focusing on the development of a central bank digital currency, the e-hryvnia, as a tool to modernize financial systems and support monetary policy [3]. Pyshnyy outlined several "red lines," including a ban on using cryptocurrencies for payments and strict enforcement of martial law restrictions. The NBU also stressed the necessity of compliance with international anti-money laundering and counter-terrorism financing standards, such as those set by the Financial Action Task Force [3].

The government’s regulatory approach is part of a global trend where countries are seeking to balance innovation in digital finance with the need to preserve financial stability and regulatory control. Ukraine’s efforts, particularly in the context of a war economy, highlight the potential for cryptocurrencies to play a role in both economic resilience and public finance [3]. As the first reading of the crypto bill nears, the debate is expected to focus on defining the boundaries of legal crypto activity, the responsibilities of market participants, and the mechanisms available to regulators for enforcement and investor protection [3].

The final form of the legislation will likely emerge from ongoing discussions among regulators, policymakers, and industry stakeholders. The proposed framework reflects Ukraine’s broader strategy to integrate crypto into the formal financial system, reduce its shadow nature, and enhance transparency. If passed, the bill could place Ukraine among a select group of countries with a codified approach to regulating digital assets [3].

Source:

[1] title: Ukraine NBU Wants Crypto Legalization, Not as ... (https://cryptonews.com/news/ukraine-nbu-wants-crypto-legalization-not-as-legal-tender/)

[3] title: NBU Outlines Prerequisites For Legalization Of Crypto ... (https://menafn.com/1109901552/NBU-Outlines-Prerequisites-For-Legalization-Of-Crypto-Assets-In-Ukraine)