Ukraine has taken a major step towards regulating the crypto market. Parliament has approved a new law on virtual assets and their taxation in the first reading.
Under this draft law:
💰 23% tax on crypto profits (18% income tax + 5% military tax)
⚡ Transitional lower rate may apply in the first year to encourage reporting
📝 Mandatory reporting and record-keeping for all crypto transactions
🔍 Stronger KYC/AML requirements for exchanges and crypto services
This will change the game for both traders and businesses, moving the industry out of the gray zone and into a regulated space.
Practical Tips: How to Prepare
1️⃣ Don’t panic, plan ahead. If you want to cash out significant amounts, consider timing and the new tax implications.
2️⃣ Track everything. Keep detailed records of every transaction:
Date & time
Amount in crypto
Fiat equivalent in UAH or USD
Wallet addresses and counterparties
3️⃣ Use exchanges with transparent reporting. Platforms that provide tax reports will make compliance easier.
4️⃣ Consider your structure. For business-level operations, evaluate options like FOP or LLC — consult a professional to choose the most tax-efficient path.
5️⃣ Get legal advice. If you deal with mining, staking, DeFi, or tokenized assets, a crypto-savvy tax lawyer is essential.
6️⃣ Stay updated. The law is still in progress — the final version may bring important changes before the second reading.
Why It Matters
🟢 Positive: Clear rules attract institutional players and legitimize the market.
🔴 Challenge: Taxes and reporting may push some users back into the shadows or P2P trading.
This is a historic step for Ukraine’s crypto community — but will it boost growth or slow down adoption?
What do you think?
Will taxation make the market safer and stronger, or push traders away? Share your thoughts in the comments 👇
