Ukraine’s parliament has moved closer to taxing cryptocurrency profits. Lawmakers recently passed a bill in its first reading. This proposal suggests a 23% tax on earnings from digital assets. It still needs further votes and a presidential signature to become law.
The Verkhovna Rada, Ukraine’s main legislative body, approved the measure with 246 votes. The plan sets an 18% income tax and an additional 5% military tax on crypto gains. For the first year the law is active, converting crypto to traditional money would see a lower 5% tax. If this framework passes its second reading and is signed, it would significantly reshape Ukraine’s digital economy. The country is already a notable leader in global cryptocurrency adoption.
Bill Details
According to Cointelegraph, the 23% tax rate aligns with suggestions made by Ukraine’s financial regulator in April. These recommendations aimed to make the tax system more attractive to the crypto sector. They proposed not taxing transactions between different cryptocurrencies or stablecoins.
Local legislator Yaroslav Zhelezniak cautioned that many changes could still happen before the second reading. A key question remains unanswered: which body will oversee the crypto sector? It could be the National Bank of Ukraine (NBU) or the National Securities and Stock Market Commission. Zhelezniak stated, "It is still unknown who will be the regulator. There will be many changes before the second reading."
Legislative and Economic Context
Ukraine has been active in crypto-related projects throughout 2025. In June, the parliament introduced a plan for creating a crypto asset reserve. Discussions about this taxation bill began in August, leading to its recent first approval.
These efforts come as cryptocurrencies gain more importance in the world economy. Governments are also looking at new ways to collect revenue. For Ukraine, facing tough economic challenges due to ongoing conflict, taxing crypto assets offers a chance for extra income. It also aims to attract more investment.
Ukraine and Global Crypto Adoption
The Chainalysis 2025 Global Crypto Adoption Index ranks Ukraine eighth worldwide. The country shows high activity in centralized exchanges for both small and large investors. It also receives a lot of value within the Decentralized Finance (DeFi) sector.
This active crypto market makes Ukraine a key example in Eastern Europe. Volodymyr Nosov, CEO of the European exchange WhiteBIT, told Cointelegraph the new tax rules could attract investments. He also believes they will help bring assets held by Ukrainian crypto enthusiasts back into the country. Nosov called this "a key factor for revitalizing the economy and modernizing the market."
Crypto Taxation Around the World
The discussion about taxing cryptocurrencies is not unique to Ukraine. Many countries have introduced similar measures over the past year.
In October 2024, Denmark’s Tax Law Council suggested a bill to tax unrealized gains from crypto assets. This is still a proposal but aims to simplify how the sector is taxed. Brazil, in June 2025, removed a tax exemption and applied a 17.5% flat rate on crypto profits. This was part of the government’s effort to boost revenue from financial markets. In the United States, the House of Representatives held a hearing in July. They discussed creating a specific regulatory framework for taxing digital assets.
These developments show that as more people adopt cryptocurrencies, governments are creating new tax systems. These systems recognize the growing importance of this market. Ukraine, with this first legislative approval, is now part of this international trend.