Ukraine’s Parliament Approves 23% Crypto Tax Bill in 1st Reading

- Ukraine’s parliament passes first reading of crypto legalization and tax bill. - Legislation proposes combined 23% tax on crypto profits. On September 3, 2025, Ukraine’s parliament, the Verkhovna Rada, passed the first reading of a bill to legalize and tax cryptocurrencies, a move that Cointelegraph reported marks a significant step toward formal regulatory oversight for digital assets. The legislation outlines an 18% income tax and a 5% military tax on profits from cryptocurrencies, which brings the combined tax rate to 23%. For the first year of implementation, the government will also apply a temporary 5% preferential tax rate to crypto-to-fiat currency conversions. The bill, which received 246 votes, aims to establish a comprehensive regulatory framework for Ukraine’s growing cryptocurrency market. According to the 2025 Global Crypto Adoption Index by Chainalysis, Ukraine currently ranks eighth globally, emphasizing its prominent role in the digital asset space. If enacted, the legislation will position Ukraine among leading nations that implement clear taxation policies for digital currencies, signaling its intent to foster economic recovery and attract crypto investments. While the bill has progressed, lawmakers anticipate further revisions before its second reading. A key unresolved issue is the designation of a regulatory authority, as the National Bank of Ukraine and the National Securities and Stock Market Commission are both vying for the role. Notably, the legislation categorizes virtual assets as digital property, distinct from legal tender. The proposed tax approach aligns with earlier recommendations from Ukraine’s financial regulators, who advocated for exempting crypto-to-crypto transactions and stablecoins from taxation. The bill draws inspiration from the European MiCA (Markets in Crypto-Assets) regulation and seeks to bolster the country’s crypto market. In addition, it encourages the repatriation of foreign assets held by Ukrainian users. This initiative is poised to contribute notably to Ukraine's post-war economic revival.