Ukraine Moves to Legitimize Crypto With New Tax Framework

Ukrainian lawmakers are accelerating legislation to grant legal status to digital assets for the first time, introducing an 18% tax on cryptocurrency gains with an additional 5% for defense funding. A one-year transition period will facilitate cheaper conversions into the local currency. The regulatory body overseeing the market—whether the central bank or securities regulator—remains undecided.

Pressure for reform escalated after the Royal United Services Institute highlighted risks tied to Ukraine's lax oversight, including foreign political funding and military technology smuggling. Experts warn that without action, Kyiv risks being labeled a money laundering hub, jeopardizing its credibility with international partners.

Public adoption of crypto in Ukraine is among the highest globally, with Chainalysis ranking the country first in Eastern Europe and top ten worldwide. Wartime financing needs have pushed policymakers to integrate digital assets into the broader economy rather than treating them as a niche market.