Ukrainian parliament Verkhovna Rada legalized cryptocurrency on Wednesday and passed the first reading of the tax bill, according to MP Yaroslav Zhelezniak. If signed into law, the bill would significantly shape the country’s digital assets economy, which ranks at the top of the world in the adoption of crypto.
According to a release on Zhelezniak’s Telegram Channel, the bill passed its first reading with support from 246 lawmakers. The draft law outlines an 18% income tax and a 5% military tax on digital assets profits. The bill also prioritizes a 5% tax rate in Fiat Conversions’ first year, according to the announcement.
The proposed 23% tax rate is consistent with the recommendations of the Ukrainian financial regulator in April. The first recommendation was exempt from inter-crypto and stablecoins transactions, bringing Ukraine’s crypto tax system closer to a crypto-friendly country.
“I don’t really make much sense right now to go into the details. There are many changes before my second reading,” Zhelezniak said in a translated statement. “It is still unknown who the regulator will be (NBU or the National Securities and Stock Markets Committee).
The Ukrainian Parliament has been pushing forward with cryptographic code this year as digital assets gain mainstream traction. In June, Verkhovna Rada introduced a bill to establish cryptocurrency reserves, and in August Cointelegraph learned that the tax bill would receive its first read.
Ukraine ranks eighth in Chain Orisis’s 2025 Global Crypto-Employment Index worldwide. The country has scored particularly high central values received in both retail and institutional categories, and also retains the top spot of defi values received.
“The opportunity has begun to attract crypto investment and repatriate foreign assets of Ukrainian crypto enthusiasts,” Volodymyr Nosov, CEO of European Crypto Exchange Whitebit, told Cointelegraph. “This is a key factor in energizing the economy and modernizing the market (…).
Cryptotax Discussions around the world
As asset classes gain global acceptance, they weigh cryptocurrency tax policies. Over the past year, Denmark, Brazil and the US have each moved to deal with crypto taxes.
In October 2024, the Danish Tax Law Council recommended a bill to collect taxes on unrealized cryptocurrency profits. The Danish tax minister said in his report that the bill’s approach would be an easier way to tax cryptography. It is still considered a proposal.
In June 2025, Brazil moved to end crypto tax exemptions and imposed a 17.5% flat tax rate on crypto profits as it promotes government funding through financial market taxation.
In July, representatives of U.S. House members were set up to hold a hearing on the framework for taxation of domestic crypto assets.
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