Ukraine Makes History: Passes Groundbreaking Cryptocurrency Legalization and Tax Bill

Kiev throws open the doors to digital finance—with tax collectors right behind.

Legal Framework Goes Live

Ukraine’s parliament just greenlit comprehensive crypto legislation, pulling digital assets out of the gray zone and into the regulated economy. No more guessing games for traders, miners, or exchanges—the rules are now written in black and white.

Tax Man Cometh

The bill doesn’t just legalize—it monetizes. Clear tax protocols mean crypto profits are now squarely in the government’s crosshairs. Suddenly, ‘decentralized’ doesn’t mean ‘tax-free’.

Market Impact

Expect liquidity surges, institutional interest, and a legitimacy bump that could make Ukraine a regional crypto hub. Finally, a nation embracing digital assets instead of pretending they’ll vanish by next quarter.

Because nothing ushers in innovation like a detailed tax form—hello, progress.

What Does Ukraine’s Cryptocurrency Legalization Bill Propose?

According to the draft bill, the state will impose an income tax of 18% and a military tax of 5% on digital asset portfolios. The bill also mentions a 5% tax on fiat conversions for the first year. This figure may increase from the second year onwards.

The cryptocurrency legalization bill is still far from its final form. Lawmakers may make required changes to the legislation over the coming weeks. Zhelezniak stated, ““

Zhelezniak also said that it is still unclear which agency will be responsible for overseeing the cryptocurrency sector. It may fall under the NBU or the National Securities and Stock Market Commission.

More Crypto Adoption For Ukraine?

Ukraine is ranked among the highest in the global cryptocurrency adoption rate. The country took the eighth spot in Chainalysis’s 2025 Global crypto Adoption Index. According to another report, about 16% of the population held cryptocurrencies before Russia’s full-scale invasion.

If Ukraine’s cryptocurrency legalization bill is signed into law, it may lead to more people getting into digital assets. However, taxation may lead to people opting for other assets. There is a possibility that the 5% tax on fiat conversions may increase in the second year. This aspect of the bill may rub crypto enthusiasts the wrong way.

The crypto industry in Ukraine has largely operated without regulations. Billions of dollars worth of transactions go under the tax radar. The MOVE may be a way for the Ukrainian government to increase its income to fuel its war with Russia.