Ukrainian lawmakers have advanced a bill that would provide legal standing for cryptocurrencies and establish a nationwide tax regime.
Transition from Loopholes to Legal Framework
Under the proposal, crypto gains would be taxed at the same 18% rate applied to income, with an additional 5% earmarked for military support. A one-year grace period offers reduced taxation on conversions to local currency. Authorities have not yet decided which regulator will oversee the market, although both the central bank and the securities commission are being considered.
Urgency Driven by Security Concerns
The move follows warnings from the Royal United Services Institute, which argued that Ukraine’s loose oversight has made it a magnet for illicit flows, including smuggling restricted military equipment. Analysts cautioned that without reforms, Kyiv risks being branded a money-laundering hub at a time when it seeks international financial support most.
Citizens' Active Participation in Crypto
According to Chainalysis, Ukraine ranks among the world's most active crypto markets, placing in the global top ten and first in Eastern Europe. This high level of adoption, combined with wartime financing strains, has pushed lawmakers to treat crypto as a necessary economic tool that must be taxed and supervised.
The bill still requires revisions before a final vote, but its momentum signals a clear shift: Ukraine now views crypto not just as a grassroots financial workaround but as an asset class that must be integrated into its formal economy and international partnerships.
