Ukraine’s parliament passes first reading of crypto tax bill with 18% income tax, aiming to regulate digital assets and boost economic growth by 2026.
Ukraine’s parliament, the Verkhovna Rada, passed the first reading of a bill to legalize and tax cryptocurrencies on September 3, 2025. Draft law No. 10225-d is a bill to regulate the virtual assets market in the country. Deputy Yaroslav Zhelezniak shared the vote on Telegram and said 246 deputies voted in favor of the legislation. This move is an important step towards bringing regulated cryptocurrency under the control of Ukraine’s rapidly expanding market.
Ukraine is at the forefront of cryptocurrency adoption worldwide. About 16 percent of Ukrainians held crypto assets before the Russian invasion, which is about the same as in the United States. The country is number eight in the 2025 Global Crypto Adoption Index of Chainalysis. Despite the popularity of the crypto market in Ukraine, it has been largely unregulated. Billions of dollars in transactions are not taxed annually, and the government misses out on potentially significant revenue.
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The bill defines virtual assets as blockchain-enabled digital property. These assets will not be deemed to be money or legal tender. Instead, they will be treated as movable property on civil law. The law places an 18% standard tax rate on income from crypto transactions. It also contains a military tax of 5% which is used to fund national defense. For the first year following the implementation of the law, the tax rate on the conversion of crypto to fiat currency to a tax rate of 5%
The draft law is a reaction to the expanding crypto market in Ukraine. The country has been adopting blockchain technology, particularly in the realm of decentralized finance (DeFi). Ukraine is also creating its own digital asset reserves for the purpose of increasing economic growth. Volodymyr Nosov, CEO of European crypto exchange WhiteBIT said the bill provides a “window of opportunity” to attract crypto investments. He thinks it will make the economy of Ukraine modern.
While the bill passed first reading, amendments are likely before second reading. Zhelezniak said lawmakers will bring forward amendments to hone the legislation. Some operational questions, such as which agency will enforce the rules, still need to be determined. Supervision of the regulations may be conducted by the National Bank of Ukraine (NBU) or the National Securities and Stock Market Commission (NSSMC). This decision will determine how the law is put into practice.
The bill has been welcomed by the crypto community in Ukraine. Many view it as progress toward clear rules and legitimacy for digital assets. However, some are still cautious and they are waiting for details on enforcement. If passed, the law will make Ukraine one of the most crypto-friendly countries in Europe. This could help to draw in more investment and innovation into the sector.
The bill’s progress is a product of global crypto regulation trends. Other countries such as Brazil and the United States, are also creating crypto tax laws. Ukraine’s step would put it in a position of a hub for regulated digital assets trading in Eastern Europe. The bill will go into effect on January 1, 2026, after further readings and approval. Step 2 may enable Ukraine to collect billions of dollars in tax revenues and improve its economy amidst other challenges.
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