Ukraine approves crypto bill in first reading
Ukraine's parliament approved a crypto regulation bill in its first reading. The law, if fully passed, would take effect on January 1, 202
Draft law No. 10225-d, which defines virtual assets and sets rules for companies that provide crypto services. The bill defines Ukraine's existing Virtual Assets legislation and updates the Tax Code along with civil and procedural codes.
Within one month after the bill takes effect, the Cabinet of Ministers must designate the authority that will regulate the virtual-asset market. According to tax committee chair Danylo Hetmantsev, the bill would set up a legal framework for virtual assets, covering lawful use, taxation, and participant safeguards.
The bill creates a special tax system for individuals. People would pay tax on their yearly profits from virtual asset trades - meaning income from sales minus what they paid to buy the assets in the same year. Taxpayers would calculate and pay this tax themselves without employers or banks collecting it for them.
Within one month after the bill takes effect, the Cabinet of Ministers must designate the authority that will regulate the virtual-asset market. According to tax committee chair Danylo Hetmantsev, the bill would set up a legal framework for virtual assets, covering lawful use, taxation, and participant safeguards.
The bill creates a special tax system for individuals. People would pay tax on their yearly profits from virtual asset trades - meaning income from sales minus what they paid to buy the assets in the same year. Taxpayers would calculate and pay this tax themselves without employers or banks collecting it for them.
Some transactions would not face taxes. These include crypto-to-crypto exchanges. Annual income from sales that does not exceed one minimum monthly wage, and assets received from companies in exchange for personal data. For businesses, the law adds accounting rules for virtual assets similar to those used for stocks and bonds.
People who bought virtual assets before the law starts can sell them in 2026 at a reduced 5% tax rate + 5% military tax, according to committee analysis cited in legal publications.
Most virtual asset activities would not face value-added tax. This includes creating, placing, selling, trading and redeeming virtual assets. However, some exceptions exist, such as certain NFTs and advisory services.
Companies providing virtual asset services cannot use Ukraine's simplified tax system. They must register with tax authorities and file yearly reports about transactions involving Ukrainian residents. The law sets penalties for non-compliance but offers reduced penalties during an initial transition period.
Volodymyr Nosov, founder of WhiteBIT Group and member of the Strategic Council of Diia.City.United, welcomed this legislative move:
People who bought virtual assets before the law starts can sell them in 2026 at a reduced 5% tax rate + 5% military tax, according to committee analysis cited in legal publications.
Most virtual asset activities would not face value-added tax. This includes creating, placing, selling, trading and redeeming virtual assets. However, some exceptions exist, such as certain NFTs and advisory services.
Companies providing virtual asset services cannot use Ukraine's simplified tax system. They must register with tax authorities and file yearly reports about transactions involving Ukrainian residents. The law sets penalties for non-compliance but offers reduced penalties during an initial transition period.
Volodymyr Nosov, founder of WhiteBIT Group and member of the Strategic Council of Diia.City.United, welcomed this legislative move:
We are glad that Ukraine has taken an important step towards introducing regulation of virtual assets. We now have a window of opportunity to attract crypto investments and bring back foreign assets of Ukrainian crypto enthusiasts. This is an important factor for reviving the economy and modernizing the market – as major crypto operators will be able to work within the legal framework, pay taxes, and receive proper protection.
At the same time, Nosov stressed that further work is needed:
However, we understand that there is still much work ahead, particularly in reaching agreements among all stakeholders regarding the regulator and taxation. Ukraine has a real chance to become the European crypto-Mecca, but to achieve this it is important to create conditions that support businesses and attract investment. Virtual assets have no borders, and our goal is to ensure competitive advantages for investors and companies by establishing favorable tax conditions and protecting the market from participants from the aggressor country.
Earlier, Volodymyr Nosov noted that the base document falls short of the comprehensive framework the market had expected, although it does contain several constructive ideas. He emphasized that for businesses, the priority remains predictable, long-term rules guaranteed by the state.
Taxation is a key issue: in seeking to collect as many taxes as possible today, the state risks losing both taxpayers and the taxable base tomorrow, since virtual assets have no borders and operate where the most favorable conditions are offered.
The draft law is likely to change between readings before the final vote. According to some lawmakers, the document brings Ukraine’s approach closer to EU MiCA standards by clarifying key terms and codifying the responsibilities of service providers.
Recommended