Ukraine Lawmakers Push Historic Crypto Legalization Bill Forward - Here’s What Changes

Ukraine's parliament just turbocharged the nation's digital economy—lawmakers advanced groundbreaking legislation that officially recognizes cryptocurrency as legitimate financial assets.

The Regulatory Framework Shift

This isn't just paperwork—it's a fundamental rewrite of Ukraine's financial rulebook. The bill establishes clear legal definitions, taxation guidelines, and regulatory oversight for digital assets, effectively bringing crypto out of the gray market and into the mainstream economy.

Market Implications

Expect immediate institutional interest—hedge funds, exchanges, and blockchain enterprises now have legal certainty to operate within Ukrainian borders. The move positions Ukraine as Eastern Europe's most crypto-friendly jurisdiction, potentially attracting billions in digital asset investments.

The Bottom Line

While traditional bankers might grumble about disrupted monopolies, this legislation demonstrates Ukraine's understanding that financial innovation waits for no bureaucracy. Sometimes progress means building new systems rather than begging permission from old ones—even if it makes Swiss bank account holders slightly nervous.

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.