Ukraine’s parliament, the Verkhovna Rada, is preparing for the first reading of a long-awaited cryptocurrency regulation bill by the end of August 2025. The legislation aims to align the country’s digital asset framework with European Union standards, potentially transforming Ukraine into a more crypto-friendly jurisdiction.
Danylo Hetmantsev, head of the parliamentary finance, tax and customs committee, confirmed that a draft law on taxing virtual asset transactions is in its final stages. Under the proposed rules, individuals will be able to legalize previously acquired digital assets by paying a 5% personal income tax and 5% military duty.
Background and Previous Efforts
Ukraine has seen multiple starts and stops in crypto regulation. In 2022, lawmakers legalized crypto exchanges, but taxation policies lagged behind. Recent proposals have sought to tax cryptocurrency trades similar to securities, with rates of up to 23% on certain transactions, though crypto-to-crypto and stablecoin trades may be exempt.
Crypto Reserve Initiative
Alongside taxation reform, Ukraine is also considering a bill to let the National Bank of Ukraine hold Bitcoin and other cryptocurrencies in its reserves. With 46,351 BTC valued at roughly $5.4 billion, Ukraine already ranks as the fourth-largest government Bitcoin holder.
This move follows similar initiatives in the U.S., where President Donald Trump ordered the creation of a strategic Bitcoin reserve, and in Kazakhstan, which announced plans for a national crypto reserve in June.
Eastern Europe’s Growing Crypto Market
The region has witnessed a surge in activity, with $499 billion in crypto flows recorded between July 2023 and June 2024. If passed, Ukraine’s regulation could strengthen its position as a regional hub for digital assets while providing clarity for investors and institutions.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.