Ukraine's Crypto Move: A $10 Billion Gamble for Economic Revival

The Ukrainian parliament has taken a significant legislative step toward regulating digital assets by advancing a bill legalizing and taxing cryptocurrencies. The proposal, which received 246 votes in favor out of 321 present lawmakers, marks the first reading of legislation aimed at formalizing the taxation of crypto transactions and stabilizing the country’s digital asset market. If finalized, the bill could generate up to $10 billion in economic revitalization and align Ukraine with global standards for crypto regulation, according to legislative documentation [1].

The proposed framework includes an 18% income tax on profits derived from virtual asset (VA) transactions, with a separate 5% military tax. Additionally, a temporary 5% tax rate will apply to those converting crypto holdings into fiat currency within the first year of the law’s implementation. The bill also introduces exemptions for crypto-to-crypto and stablecoin transactions, making Ukraine’s tax regime more attractive to investors [4]. This approach mirrors recommendations by Ukraine’s financial regulator in April 2025, which advocated for a 23% taxation rate on certain digital asset activities [4].

Regulatory oversight of the newly legalized crypto sector will fall under the National Bank of Ukraine (NBU), which will be responsible for supervising virtual asset markets. However, the second regulatory body—whose role includes inspecting, investigating, and seizing assets—remains to be determined [5]. Lawmaker Yaroslav Zhelezniak, a vocal supporter of the bill, acknowledged that the current version will likely undergo revisions before the second reading, with uncertainties remaining regarding the final structure of the regulatory framework [4].

The bill’s advancement aligns with Ukraine’s growing prominence in the global crypto adoption landscape. According to Chainalysis’s 2025 Global Crypto Adoption Index, Ukraine ranks eighth globally, with high levels of centralized value received and DeFi activity. The country has seen a surge in crypto usage, particularly after the National Bank of Ukraine imposed financial restrictions to curb capital flight during the war with Russia. The new legislation is expected to encourage capital repatriation and attract foreign investment in the digital asset space [5].

Industry leaders have responded positively to the proposed reforms. Volodymyr Nosov, CEO of WhiteBIT, noted that the bill could foster innovation and serve as a key factor in revitalizing Ukraine’s economy. However, experts caution that implementation will require close collaboration between the NBU, the tax authority, and potential secondary regulators to ensure transparency and compliance [1]. The next major legislative step will involve a second reading in parliament, where further refinements to the bill are anticipated [4].

Source:

[1] Ukraine’s Parliament Supports Crypto Tax Bill at First Reading (https://cointelegraph.com/news/ukraine-crypto-legalization-taxation-bill-first-reading)

[2] Ukraine Parliament Advances Crypto Legalization Bill (https://coincu.com/news/ukraine-crypto-bill-legalization/)

[3] Ukraine's lawmakers vote to legalize crypto (https://www.cryptopolitan.com/ukraines-lawmakers-vote-to-legalize-crypto/)