Ukraine was on the verge of major crypto progress — instead, a political storm erupted. President Volodymyr Zelenskyy is being accused of blocking a key cryptocurrency bill, delaying long-awaited regulation for the country's digital asset sector.

📌 The law titled "On Virtual Assets" was expected to provide a clear tax framework and generate crucial state revenue during wartime. But according to insiders, it was personally removed from the legislative agenda by the president's office.

❗“The president personally killed the bill,” claims lawmaker

Ukrainian MP Yaroslav Zhelezniak announced on Telegram that the bill had been unexpectedly withdrawn — allegedly at the request of Ruslan Magomedov, head of Ukraine’s Securities and Stock Market Commission. According to Zhelezniak, Magomedov pressured the head of Zelenskyy’s administration, Andriy Yermak, who then influenced the president’s decision.

In a YouTube video, Zhelezniak accused Magomedov of deliberately sabotaging the development of Ukraine’s Web3 industry, thereby depriving the country of much-needed tax revenue during wartime.

YouTube video - https://www.youtube.com/watch?v=aiOg9-Mh8Go&t=1s

🧩 The excuse? Concerns over EU rules and “pro-Russian loopholes”

Magomedov claimed the proposed law clashes with the EU’s MiCA regulation, as it does not grant the securities commission enough control.

He also warned the law could allow foreign crypto providers to operate in Ukraine without prior authorization, potentially opening the door to Russian-affiliated companies hiding behind third-party jurisdictions.

Moreover, the bill had not been approved by the Financial Stability Council, nor reviewed by Ukrainian security services (SBU) — prompting concerns about national security.

💥 Critics Sound Alarm: Ukraine Losing Billions and Web3 Momentum

Zhelezniak argues these objections are politically motivated and says the result is that Ukraine is falling behind in the global race for crypto and digital finance leadership.

The bill proposed an 18% tax on crypto profits and an increase in the wartime surcharge from 1.5% to 5%. According to the MP, these funds could have been funneled into defense — and now remain untapped.

🔜 What’s Next?

Zhelezniak vows to keep fighting for the bill. He calls not only for the law to be reconsidered, but for a complete overhaul of the regulatory body, which he says is blocking innovation.

The crypto tax bill had already been approved by Ukraine’s tax committee and was awaiting final parliamentary debate. Now, everything is on hold. For a country aiming to become a tech leader, this is a significant setback.

#Cryptolaw , #CryptoRegulation , #bitcoin , #DigitalAssets , #CryptoNewss

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