Ukraine’s parliament is preparing for the initial reading of a new cryptocurrency regulation bill scheduled for late August 2025. This legislation aims to create a comprehensive legal framework for digital assets, aligning with European standards.
Danylo Hetmantsev, chair of the parliamentary finance, tax, and customs committee, confirmed the draft law on taxing virtual asset transactions is nearing completion. The bill’s first reading in the Verkhovna Rada is expected by the end of August.
A significant part of this bill enables holders to legalize previously acquired digital assets. Those declaring such assets would be subject to a 5% personal income tax and a 5% military tax, providing a clear regulatory path for crypto asset legalization.
Historically, Ukraine has experienced mixed progress in crypto regulation. Despite legalizing cryptocurrency exchanges in 2022, the government has been slow to implement taxation on crypto transactions.
In December 2024, plans were introduced to tax cryptocurrency trading similarly to securities, charging taxes when digital assets are converted into fiat currency. Further, in April 2025, the financial regulator proposed a tax rate up to 23% on specific crypto transactions, with exceptions for crypto-to-crypto and stablecoin trades.
In a parallel development, legislators recently proposed allowing Ukraine’s National Bank to include cryptocurrencies such as Bitcoin in its reserve assets. Announced in May during a Kyiv conference, this move would position Ukraine among a select group of nations codifying cryptocurrency reserves.
According to BitcoinTreasuries.net, Ukraine ranks as the fourth-largest government holder of Bitcoin, possessing 46,351 BTC, valued at approximately $5.4 billion at present.
If enacted, Ukraine’s legislation would join US and Kazakhstani efforts to establish strategic Bitcoin reserves. The US signed an executive order for a Bitcoin reserve in March 2025, and Kazakhstan announced similar plans in June 2025.
Eastern Europe has seen a significant surge in crypto activity, with the region receiving $499 billion in crypto flows between July 2023 and June 2024. These regulatory advances reflect a growing recognition of cryptocurrency’s role in the regional financial landscape.
