Bitcoin News Today: Ukraine to Regulate Crypto with 5% Tax and Legalization Framework in August 2025

Ukraine’s government is preparing to bring forward a regulatory framework for cryptocurrency in late August 2025, as outlined by key officials and central bank representatives. The draft bill, which is in the final stages of preparation, is expected to undergo its first reading in the Verkhovna Rada, the country’s parliament. The legislation is intended to align Ukraine’s approach with European regulatory standards and to provide a formal legal structure for digital assets [1].

A central element of the proposed bill is the opportunity for individuals to legalize previously acquired digital assets. This process would require those seeking to declare such holdings to pay a 5% personal income tax and a 5% military contribution, according to Danylo Hetmantsev, head of the parliamentary committee on finance, tax, and customs policy [1]. This measure is seen as a key step in reducing the shadow economy and integrating crypto activity into the formal financial system.

The regulatory push comes after several years of legislative uncertainty regarding cryptocurrency in Ukraine. In 2022, the Verkhovna Rada passed legislation to legalize crypto exchanges, but progress on taxation has been limited. In late 2024, the government revealed plans to tax crypto trading similarly to securities, with taxes applying when assets are converted into fiat currency [1]. In April 2025, the country’s financial regulator proposed a tax rate of up to 23% on certain crypto transactions, though exemptions for crypto-to-crypto and stablecoin transactions were also considered [1].

In addition to taxation, lawmakers have introduced a bill in June that would allow the National Bank of Ukraine (NBU) to include cryptocurrencies like Bitcoin in its foreign reserves [2]. Ukraine is already among the top government holders of Bitcoin, with 46,351 BTC valued at approximately $5.4 billion [1]. This move could place Ukraine among a small number of jurisdictions with formal cryptocurrency reserve policies, following recent announcements from the U.S. and Kazakhstan [1].

The NBU has expressed a cautious but open stance toward crypto regulation. Andriy Pyshnyy, the NBU governor, emphasized that the legalization of cryptocurrencies must be conditional and limited by “red lines” to protect monetary stability and regulatory oversight [3]. He reiterated that digital assets should not serve as legal tender and must not interfere with the central bank’s authority to manage the economy [3]. Pyshnyy also highlighted the importance of ensuring that the regulation is robust enough to prevent evasion of martial law restrictions and to maintain adequate gold and foreign exchange reserves [3].

To align with international standards, the NBU’s approach includes compliance with the Financial Action Task Force (FATF) and European regulatory frameworks [3]. The proposed legislation is expected to grant regulators the power to act swiftly in cases of consumer rights violations in the crypto space and to establish supervision mechanisms to preserve the integrity of the financial system [3].

The urgency of the legislative process reflects growing momentum in Eastern Europe’s crypto sector, which received $499 billion in crypto flows between July 2023 and June 2024 [1]. Ukraine’s efforts to formalize its crypto market could contribute to broader economic reforms and enhance the country’s financial credibility on the international stage [3].

The upcoming legislative debates in late August will be critical in determining the shape of Ukraine’s crypto regulatory framework. While the government shows a willingness to encourage innovation and transparency, the central bank remains vigilant in protecting its monetary authority and ensuring the stability of the national currency [3].

Source: [1] Ukraine to weigh bill regulating crypto market in late August (https://cointelegraph.com/news/ukraine-weigh-bill-regulating-crypto-market-august)

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

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