In a significant move for the cryptocurrency sector, Ukrainian officials have announced plans to conduct the initial reading of a much-anticipated crypto regulation bill by late August 2025. After a series of regulatory ups and downs, momentum has built for this legislation since early 2024. This proposal aims to establish a comprehensive legal framework for digital assets that aligns with European standards.
Danylo Hetmantsev, the head of Ukraine’s parliamentary committee on finance, tax, and customs policy, revealed that the draft law concerning the taxation of transactions with virtual assets is currently in its final stages. He stated, “The submission for the first reading in the Verkhovna Rada is scheduled for the end of August 2025.” This move reflects the growing recognition of the need for a stable regulatory environment to foster growth in the crypto market.
One of the key provisions of the upcoming bill is the opportunity for individuals to legalize previously acquired digital assets. As proposed, holders looking to bring their assets into compliance will be required to pay a 5% personal income tax along with an additional 5% military duty. This comes at a time when Ukrainians have increasingly engaged with cryptocurrencies, making it vital for the government to provide a clear regulatory framework.
Historically, Ukraine has faced numerous challenges regarding crypto regulation, with legislation legalizing crypto exchanges having passed in 2022 yet slow progress on taxation policies. Nonetheless, the current government appears committed to moving forward. Previous announcements have hinted at plans for new legislation to treat cryptocurrency trading similarly to securities by imposing taxes when these digital assets are converted to fiat currencies.
Additionally, in April 2025, the financial regulator of Ukraine put forth a proposal to tax specific crypto transactions at rates as high as 23%, with some exceptions for crypto-to-crypto exchanges and transactions involving stablecoins. This progressive approach may position Ukraine alongside countries that have already embraced the taxation of digital assets.
Furthermore, legislative efforts have been initiated to allow the National Bank of Ukraine to include cryptocurrencies such as Bitcoin in its reserves. This policy, announced in May during a conference in Kyiv, aims to recognize cryptocurrencies in the country’s monetary framework. As of now, Ukraine ranks as the fourth-largest holder of Bitcoin globally, with 46,351 BTC, valued at approximately $5.4 billion.
Should the forthcoming legislation be ratified, Ukraine would join the ranks of a select few jurisdictions around the world that have established clear definitions and rules surrounding the management of cryptocurrency reserves. As other nations like Kazakhstan and the United States solidify their positions in the realm of digital assets, Ukraine’s efforts signify a crucial step in recognizing and adapting to the evolving landscape of cryptocurrency.
The increase in crypto transactions and interest in digital currencies in Eastern Europe has surged, with over $499 billion received in crypto flows between July 2023 and June 2024. As we look ahead, this imminent legislation could have profound implications, shaping the future of cryptocurrency not just in Ukraine, but also influencing regulatory conversations globally.
