Ukraine Lawmakers Advance Crypto Legalization with 5%-10% Tax Proposal

• Ukraine lawmakers advance a proposed crypto bill outlining a 5%-10% tax rate with a timeline aiming for digital asset regulation by summer 2025.
• The bill distinguishes standard individual taxation from investor obligations, imposing a 23% tax on assets without verifiable origin for early cryptocurrency investments.
• Deputy Taras Kozak and committee chairman Hetmantsev express optimism, citing expedited legislative reviews and full crypto legalization and taxation implementation by 2026.

Ukraine is advancing efforts to legalize cryptocurrency. Lawmakers are reviewing a bill proposing a tax rate of 5% to 10%. The initiative aims to clarify digital asset regulation and taxation while supporting investor confidence. Legislation may be enacted by mid-2025.

Legislative Process and Timeline

The Verkhovna Rada committee is moving forward with multiple readings. Chairman Daniil Hetmantsev said lawmakers are doing everything possible for rapid adoption.

In a recent tweet from Wu Blockchain, it stated that Ukraine is moving forward with the legalization of cryptocurrency. The tweet added that lawmakers expect a vote on the bill in the coming months. Lawmakers plan a second reading immediately after the first vote. They aim to finalize the bill by the summer of 2025. The process remains under careful review. Officials remain vigilant.

Taxation Framework

Deputy of the Kyiv City Council, Taras KKozak, emphasizes the importance of a fair tax rate for cryptocurrency. Investors and businesses favor a lower tax to boost market participation.

Kozak stated, “I am inclined to the fact that there should be a small tax—about 5% to 10%.” He added, “All incomes of citizens should be taxed because our state lives on this money.” He mentioned, “Our army fights, we buy weapons, and we maintain security.”

Standard taxation includes 18% on individual income plus a 5% military levy. Investors investing before the law’s enactment may face a 23% rate on total assets. The measure seeks to ensure that funds are properly documented.

Industry Perspectives and Future Projections

Kozak expressed optimism about the legislative progress. He said, “I am an optimist and believe that the draft law will pass all readings in the Verkhovna Rada.” He confirmed, “From 2026, crypto will be legalized , and income from it will be taxed.”

In another interview, Kozak remarked, “We are doing everything possible to expedite the process.” He later stated, “I’m optimistic that the bill will pass by the end of the year.” He added, “Full legalization and taxation will likely come into effect in 2026.”

Officials continue to review the timeline for legal reforms. Industry representatives await further guidance as lawmakers refine the bill details.