Bitcoin News Today: Ukraine to Legalize Crypto Holdings with 5% Tax in August 2025 Legislation

Ukraine is set to review a comprehensive legislative proposal aimed at regulating the cryptocurrency market in late August 2025, signaling a key development in its broader strategy to integrate digital assets into the formal financial system [3]. The initiative, led by the Verkhovna Rada’s Finance, Taxation, and Customs Policy Committee, involves the drafting of a bill that could establish a legal framework for digital assets aligned with European standards [3]. The legislation is expected to undergo its first reading in the parliament in August, with the goal of legitimizing existing crypto holdings and bringing the industry into the regulatory fold [3].

The proposed bill includes a critical provision allowing individuals to declare and legalize previously held crypto assets by paying a 5% personal income tax and a 5% military contribution [3]. This approach reflects the government’s intent to formalize the sector while supporting national defense funding. Danylo Hetmantsev, head of the parliamentary committee, noted that the legislation is in the final drafting stage and is expected to be submitted for formal consideration in late August [3].

This move builds upon previous legislative actions. In 2022, Ukraine passed a law legalizing crypto exchanges, but tax-related progress has been slower [3]. A December 2024 government proposal suggested treating crypto trading similarly to securities, with taxes levied upon conversion to fiat currency [3]. In April 2025, the financial regulator floated a tax rate of up to 23% on certain crypto transactions, with exceptions for stablecoin and crypto-to-crypto trades [3]. These steps demonstrate a gradual, measured approach to regulation rather than an abrupt overhaul of the market.

Simultaneously, Ukraine has shown interest in incorporating cryptocurrencies into its national financial strategy. In June, a bill was introduced allowing the National Bank of Ukraine (NBU) to include cryptocurrencies like Bitcoin in its reserve [3]. Ukraine is already among the top government holders of Bitcoin, holding 46,351 BTC valued at approximately $5.4 billion [3]. This aligns the country with emerging global trends, such as the U.S. strategic Bitcoin reserve announced by Donald Trump and Kazakhstan’s plans for a similar initiative [3].

The NBU has emphasized the need for a regulatory framework that ensures compliance with international standards, including those of the Financial Action Task Force (FATF) [3]. According to NBU Governor Andriy Pyshnyy, virtual assets must not be used as legal tender and should not undermine the central bank’s authority or financial stability [3]. He stressed the importance of maintaining monetary control and ensuring that crypto does not become a tool for circumventing financial oversight [2].

The proposed legislation aligns with a broader global trend of integrating digital assets into regulated financial systems, contrasting with the more restrictive approaches seen in some regions. Ukraine’s approach suggests a strategic, cautious path that balances innovation with risk management, rather than rapid adoption [1].

Source:

[1] https://cryptorank.io/news/feed/825e9-ukraine-sets-red-lines-for-legalizing-crypto

[2] https://cryptonews.com/news/ukraine-nbu-wants-crypto-legalization-not-as-legal-tender/

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