Ukraine Moves to Legalize Crypto Sector with New Tax Framework

Ukraine has initiated formal steps to regulate its cryptocurrency market, transitioning from an unregulated environment to one with clear legal status. Lawmaker Yaroslav Zhelezniak announced the approval of a draft bill that introduces an 18% income tax and a 5% military contribution on digital asset transactions. A temporary 5% tax rate will apply for one year to incentivize compliance during the transition period.

The regulatory authority for the crypto sector remains undetermined, with the National Bank of Ukraine and the National Securities and Stock Market Commission under consideration. Further revisions to the bill are expected before its second reading.

This legislative push comes as Ukraine faces increasing pressure to strengthen oversight of its crypto industry. A RUSI study suggests the country could recover up to $10 billion by implementing robust regulations, citing concerns over illicit financial flows through over-the-counter markets.