Ukraine has made strides towards legalizing cryptocurrencies with a new bill aimed at taxation and the structuring of digital assets.
Purpose of the Cryptocurrency Bill
The proposed bill, known as the "Crypto Legalization and Taxation Bill," seeks to recognize cryptocurrencies as legal entities. Under this law, digital assets will be subject to an 18% income tax and a 5% military tax on profits, along with a temporary 5% tax on fiat conversions for the first year.
Support for the Bill from Lawmakers
The bill passed its first reading in the Verkhovna Rada with 246 votes in favor. Lawmaker Yaroslav Zhelezniak stated on Telegram that while the bill specifies tax rates, important details remain unclear. It is uncertain which authority will oversee the digital asset space, as possible regulators include the National Bank of Ukraine and the National Securities and Stock Market Commission.
Ukraine's Ranking in Cryptocurrency Adoption
According to Chainalysis's 2025 report, Ukraine ranks eighth in cryptocurrency adoption. The country has emerged as a leader in blockchain utilization, particularly in the DeFi space, actively building its digital asset reserves. However, due to the lack of clear crypto regulation, the country lost at least $10 billion to digital asset hacks and threats. A recent report published by the Royal United Services Institute (RUSI) indicated that Ukraine-specific risks are primarily related to over-the-counter activities and the use of crypto for facilitating procurement for the Russian military.
Thus, Ukraine is actively working towards establishing a legal framework for cryptocurrencies, which should improve transparency and structure in the rapidly growing Web3 economy.
