Bitcoin News Today: Ukraine Pushes Crypto Regulation Bill with 5 Tax on Digital Assets Legalization

Ukraine is advancing a crypto regulation bill that could establish a legal framework for digital assets and introduce taxation on Bitcoin, marking a pivotal shift in the country’s approach to cryptocurrency. The legislation, slated for its initial reading in parliament by late August 2025, aims to bring clarity to the status of cryptocurrencies held by individuals and businesses, allowing for their formal legalization. Under the proposed framework, individuals would pay a 5% personal income tax to legitimize their digital assets, a provision that mirrors tax policies in several European countries [1].

This regulatory push comes as Ukraine emerges as a significant player in the global crypto landscape. According to data from BitcoinTreasuries.net, Ukraine holds 46,351 BTC, placing it among the top four governments in Bitcoin holdings globally. The move to formalize the tax and legal status of digital assets is seen as a strategic step to align with international standards and encourage transparency in the crypto sector. Danylo Hetmantsev, head of the parliamentary committee on finance, tax, and customs policy, confirmed that the bill is in its final drafting stages [1].

The bill also reflects broader efforts by the Ukrainian government to integrate digital assets into its financial system. Earlier in 2025, legislators introduced a separate bill that would permit the National Bank of Ukraine to hold Bitcoin and other cryptocurrencies in its reserves. If passed, this measure would place Ukraine among a small group of nations exploring the use of crypto as a reserve asset, following similar initiatives by the United States and Kazakhstan [1].

Ukraine’s regulatory momentum has accelerated since early 2024, with policymakers increasingly recognizing the economic potential of blockchain technology. The proposed 5% tax rate for asset legalization aligns with a European approach that emphasizes controlled growth and investor protection. By providing a clear legal and tax structure, the bill is expected to foster institutional confidence and attract foreign investment into the country’s digital economy [1].

However, the success of the bill will depend on its implementation and enforcement. Challenges such as cross-border compliance, regulatory harmonization with neighboring jurisdictions, and the risk of misuse in a still-developing digital financial ecosystem remain. Despite these hurdles, the bill represents a forward-thinking strategy to integrate crypto into the broader financial infrastructure, positioning Ukraine as a leader in Eastern Europe’s evolving digital asset market.

As the bill moves through the legislative process, market participants and policymakers alike will be watching closely for signals of how Ukraine intends to balance innovation with regulation in the coming months. The outcome could set a precedent for regional regulatory approaches and shape the future of crypto governance in the region.

Source: [1] Crypto Short News – Latest Real-Time Updates (https://coinpedia.org/crypto-live-news/)