Ukraine to propose 5% tax on crypto holdings in late August 2025

Ukraine is advancing its cryptocurrency regulatory agenda with plans to conduct the preliminary reading of a proposed digital assets bill in late August 2025 [1]. The initiative, led by Danylo Hetmantsev, Chairman of the Parliament’s Finance, Tax, and Customs Policy Committee, seeks to establish a legal and tax framework for digital assets that aligns with European financial standards [2]. The bill includes a 5% personal income tax and a 5% military tax on legalized crypto holdings, marking a significant step in formalizing the treatment of virtual assets within the national economy [3].

The proposed legislation aims to enhance transparency and institutional trust in Ukraine’s growing crypto market, while also integrating it with broader European financial systems [4]. By legalizing previously unregistered digital assets, the government hopes to bring a previously opaque sector into the formal economy, potentially boosting tax revenues and reducing illicit financial activity [5]. Although the central bank has not endorsed the use of crypto as legal tender, its cautious but supportive stance reflects a broader national strategy of balancing innovation with financial stability [6].

Experts suggest that the regulatory move could attract more institutional investment and foster a more structured environment for digital asset participation [7]. The country’s approach mirrors global efforts to bring crypto markets under clearer regulatory oversight while preserving the innovation potential of the sector. The initial parliamentary reading represents a critical phase in the legislative process and is expected to spark further debate on the balance between regulation and technological advancement [8].

The timing of the bill aligns with Ukraine’s earlier legalizations of crypto exchanges in 2022, which positioned it as a regional leader in digital asset adoption [9]. As the country moves toward formal regulation, it is likely to influence investor confidence and shape the trajectory of its digital economy. The outcome of the legislative process will be closely monitored by stakeholders, as it sets the stage for a more integrated and transparent financial landscape in Ukraine [10].

Source:

[1] Ukraine to weigh bill regulating crypto market in late August, CoinFi, https://www.coinfi.com/news/1699309/ukraine-to-weigh-bill-regulating-crypto-market-in-late-august

[2] Ukraine Pushes Crypto Regulation Bill with 5% Tax on Digital Assets, AInvest, https://www.ainvest.com/news/bitcoin-news-today-ukraine-pushes-crypto-regulation-bill-5-tax-digital-assets-legalization-2508/

[6] "Allowing Crypto As A Legal Tender Is A Red Line" – Ukraine Central Bank, CoinGape, https://coingape.com/allowing-crypto-as-legal-tender-red-line-ukraine-central-bank/

[9] Ukraine to Align Crypto Laws with European Standards by 2025, CoinTelegraph