The draft law passed its first reading with 246 votes and proposes an 18% income tax, 5% military tax, along with a temporary 5% rate on fiat conversions in its first year.
The Verkhovna Rada, Ukraine’s parliament, passed the first reading of a bill to legalize and tax cryptocurrency on Wednesday, according to lawmaker Yaroslav Zhelezniak. If signed into law, the bill would significantly shape the digital asset economy in the country, which ranks among the world’s top in crypto adoption.
According to Zhelezniak’s announcement on a Telegram channel, the bill passed the first reading with 246 lawmakers voting in support. The legislation’s draft outlines an income tax of 18% and a military tax of 5% on digital asset profits. The bill also sets a preferential 5% tax rate on fiat conversions its first year, according to the announcement.
The proposed taxation rate of 23% is in line with the April recommendation of Ukraine’s financial regulator. The initial recommendation exempted crypto-to-crypto and stablecoins transactions, bringing Ukraine’s crypto tax system closer to crypto-friendly countries.
“I don’t see much point in going into detail now, there will be many changes before the second reading,” Zhelezniak said in an translated statement. “It is still unknown who the regulator will be (NBU or the National Securities and Stock Market Commission).”
Ukraine’s parliament has been advancing crypto legislation this year as digital assets gain mainstream traction. In June, the Verkhovna Rada introduced a bill to establish a crypto asset reserve, and in August, Cointelegraph learned that a taxation bill would receive its first reading.
Ukraine ranks eighth globally in Chainalysis’s 2025 Global Crypto Adoption Index. The country scores particularly high in centralized value received across both retail and institutional categories, and also holds a top spot in DeFi value received — a sector gaining traction in Eastern Europe.
“A window of opportunity has opened for attracting crypto investments and repatriating foreign assets of Ukrainian crypto enthusiasts,” Volodymyr Nosov, CEO of European crypto exchange WhiteBIT, told Cointelegraph. “This is a key factor for revitalizing the economy and modernizing the market […].”
Crypto tax discussions around the world
More countries are weighing tax policies for cryptocurrencies as the asset class gains global acceptance. Over the past year, Denmark, Brazil and the United States have each moved to address crypto taxation.
In October 2024, Denmark’s Tax Law Council recommended a bill to levy taxes on unrealized crypto gains. In his report, the Danish tax minister said that the bill’s approach would be a simpler way to tax crypto. It is still considered a proposal.
In June 2025, Brazil moved to end a crypto tax exemption and impose a 17.5% flat tax rate on crypto gains amid a government’s push to raise money through taxation of financial markets.
In July, representatives in the US’s lower legislative chamber were set to hold a hearing on a framework for the taxation of crypto assets in the country.
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