Ukrainian Parliament Backs Bill To Legalize Cryptocurrency

(MENAFN- UkrinForm) MP Yaroslav Zhelezniak (Holos faction) announced this on Telegram , Ukrinform reports.

A total of 246 lawmakers voted in favor of the bill.

Under the document, the general tax rate on virtual asset transactions will be 18% profit tax plus a 5% military fee. However, during the first year after the law comes into effect, a reduced 5% tax rate will apply for converting crypto into fiat currency.

According to Zhelezniak, significant amendments are expected before the second reading.

Danylo Hetmantsev head of the committee on finance, tax and customs policy, explained that the bill defines a virtual asset as a special type of digital property that exists electronically based on distributed ledger technology (blockchain). Virtual assets are not considered legal tender in Ukraine and cannot be used as an official means of payment.

Read also: NBU outlines prerequisites for legalization of crypto assets in Ukraine

The draft law classifies virtual assets into three categories: asset-backed tokens – their value is stabilized by being tied to assets such as currency or property; e-money tokens – pegged to a single official currency, and other virtual assets – a broad category covering tokens outside the first two groups.

For individuals, the bill introduces a separate taxation regime for income from virtual asset transactions. The taxable amount will be calculated as the difference between annual income from sales and acquisition costs. For assets purchased before the law takes effect, a reduced 5% personal income tax (PIT) will apply if they are sold during 2026.

For legal entities, new rules will adjust financial results similarly to securities taxation, with the Ministry of Finance authorized to define deductible expenses based on proposals from the regulator.

Additionally, VAT will not apply to issuing, placing, selling, exchanging, or redeeming virtual assets - except for NFTs and tokens granting rights to demand property or services.

Providers offering virtual asset services to Ukrainian residents must register with supervisory authorities and submit annual reports on related transactions.

Failure to comply will result in fines, though reduced penalties will apply during the transition period, including 10% of the standard fine in 2026 and 25% of the standard fine between 2027 and 2029.

"This is about creating clear rules of the game for market participants. Legalizing crypto could have a significant impact on the state budget," Hetmantsev said. "According to a Global Ledger study, if the crypto market had been legalized earlier, Ukraine could have collected around UAH 8.34 billion in taxes from registered exchanges (at an 18% rate) and up to UAH 6.53 billion from individual income taxation between 2021 and 2024."

The amendments to the Tax Code are expected to take effect on January 1, 2026.

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