Ukraine lawmakers advance cryptocurrency legalization bill
Ukraine is edging towards clearer crypto regulation with a new bill on legalization and crypto taxation.
- Ukraine’s parliament, the Verkhovna Rada, has passed the first reading of a bill to legalize cryptocurrency, with 246 votes in favor and 31 against.
- The bill introduces an 18% tax rate, with a 5% tax on crypto profits, and a temporary 5% tax rate for fiat conversions in the first year.
- The bill would be up for second reading in the coming months.
On Wednesday, the Ukrainian parliament, the Verkhovna Rada, voted on a bill that could bring regulatory clarity to the country’s growing crypto sector, according to lawmaker Yaroslav Zhelezniak. The recent adoption signals the increasing interest of Ukraine in the integration of cryptocurrency into its economy.
A vote of confidence for Ukraine’s crypto future
The first reading of the bill was passed by a large majority of 246 out of 321 total votes, with only 31 votes being against. The high margin is an indication that the country is willing to adopt digital innovation, despite the current conflict with Russia. This move aligns with the government’s goal of providing a structured environment where individuals and businesses can confidently engage with cryptocurrencies.
For Ukrainians, the bill is not only a regulatory clarity but it may have a profound effect on the taxation and trading of digital assets in the country. The proposed law would impose an 18% plus 5% general tax rate on crypto profits. Also, the first year would see a reduced 5% tax rate on conversions to fiat currency, offering crypto traders and investors a temporary reprieve.
The proposed 23% crypto tax aligns with April’s recommendation by the country’s SEC. The initial proposal excluded crypto-to-crypto and stablecoin transactions, moving the country closer to crypto-friendly tax models.
However, further revisions are expected. Zhelezniak said, “I don’t see much point in going into detail now, there will be many changes before the second reading,” in a translated statement.
Ukraine’s growing position as a global crypto leader
With Ukraine still recovering and rebuilding after the destruction caused by the Russian invasion, its attention to cryptocurrency has become even more pressing. The country has become a pioneer in crypto adoption. Chainalysis 2025 Global Crypto Adoption Index places Ukraine at 8th in the world in terms of crypto adoption, which is a credit to the nation having a strong digital asset culture despite the current geopolitical issues.
Meanwhile, the crypto legalization bill builds on earlier efforts from 2022, before Ukraine’s regulatory initiatives were paused due to the full-scale invasion by Russia. Nevertheless, the momentum of crypto regulation in has Ukraine remained strong. In June 2025, legislators proposed a bill to add virtual assets to the foreign currency reserves of the National Bank of Ukraine, potentially making it the first European country to have a state-operated Bitcoin reserve.
For now, the country awaits the second reading of the bill, which is expected take place in the coming months. Full legalization of cryptocurrency and a special crypto reserve would put Ukraine at the center of digital asset regulation in Europe, which can open new opportunities in international investment and digital innovation.
