Ukraine parliament advances crypto tax bill with 23% rate on profits
The Verkhovna Rada, Ukraine’s parliament, has approved the first reading of a bill to regulate and tax cryptocurrency on 3 September, according to lawmaker Yaroslav Zhelezniak, moving closer to setting a clear framework for digital assets. The legislation, if enacted, would significantly impact the country’s digital asset economy, where Ukraine already ranks among the top globally for crypto adoption.
Zhelezniak confirmed on Telegram that 246 lawmakers voted in favor of the bill. The draft sets an income tax of 18 percent and a military tax of 5 percent on crypto profits. In its first year, the legislation also proposes a preferential 5 percent tax rate on fiat conversions, designed to ease the transition into the new system.
The combined 2 percent tax rate aligns with an April recommendation from Ukraine’s financial regulator. That guidance had suggested exempting crypto-to-crypto and stablecoin transactions, a move bringing Ukraine’s approach closer to crypto-friendly jurisdictions.
Regulator still undecided
Despite the progress, Zhelezniak noted that major details remain unresolved. “I don’t see much point in going into detail now, there will be many changes before the second reading,” he said. “It is still unknown who the regulator will be (The National Bank of Ukraine or the National Securities and Stock Market Commission).”
Ukraine’s parliament has been advancing crypto legislation steadily this year. In June, lawmakers introduced a bill to establish a crypto asset reserve, and by August, reports confirmed that a taxation bill was nearing its first reading.
Ukraine’s crypto adoption among world’s highest
According to Chainalysis’s 2025 Global Crypto Adoption Index, Ukraine ranks eighth globally. The country scores highly in centralised value received across both retail and institutional categories and also leads in DeFi activity across Eastern Europe.
“A window of opportunity has opened for attracting crypto investments and repatriating foreign assets of Ukrainian crypto enthusiasts,” said Volodymyr Nosov, CEO of European crypto exchange WhiteBIT. “This is a key factor for revitalizing the economy and modernizing the market.”
Global context: crypto taxation debates widen
Ukraine’s recent move aligns with global push for crypto taxation as nations move to adopt and regulate digital assets. In October 2024, Denmark proposed taxing unrealised crypto gains—a bill which is currently still under review.
In June, Brazil followed suit, eliminating a tax exemption and implementing a 17.5 percent flat tax on crypto profits as part of sweeping fiscal reforms. Meanwhile, the United States is exploring its own crypto tax framework, with Congress preparing hearings in July to address regulatory gaps.
Last month, India’s Central Board of Direct Taxes (CBDT) initiated formal discussions with crypto platforms to address longstanding concerns about high taxation, ambiguous regulations, and limited banking support. This development may indicate a shift in how digital assets are regulated in the country.
Meanwhile, China is considering legalising stablecoins backed by the yuan after years of strict laws on cryptocurrencies, according to sources. If approved, this would reverse its 2021 ban on crypto trading and mining, which was implemented to maintain financial stability. The shift is driven by global competition, as the US advances in stablecoin adoption and China considers more active participation in this area.
