Ukrainian lawmakers are considering a crypto tax rate of up to 10% as they prepare to vote on the crypto legalization bill in the coming months. Ukraine has decided to move forward with the legalization of digital assets, and legislation is expected to be completed by mid-2025. Ukrainian local media reported on Feb. 28th that the country’s lawmakers were expected to vote on a long-awaited bill in the coming months, but uncertainty over how digital assets will be taxed remained a key issue that could impact the country’s growing crypto sector. According to the report, the issue of legalization and taxation of crypto in the country has long been in ‘limbo’, but it is assumed that ‘people’s deputies will vote for the corresponding bill already in the first quarter of 2025’. Taras Kozak, the president of the investment group UNIVER and deputy of the Kyiv City Council, said that the problem with the legality of the digital assets market will be solved by the summer, although what happens with income tax is still unclear. Chairman Hetmantsev disclosed that he was doing everything possible to fast-track the adoption of a bill on the legalization of crypto. Hetmantsev predicts first reading by the end of March JUST IN: UKRAINE IS MOVING FORWARD WITH THE LEGALIZATION OF CRYPTO WITH LAWMAKERS EXPECTED TO VOTE ON A BILL IN THE COMING MONTHS. Source: @News_Crypto https://t.co/B9k739hp5y pic.twitter.com/Kpsc5HxssA — Mario Nawfal’s Roundtable (@RoundtableSpace) March 1, 2025 Chairman Hetmantsev forecasted that the first reading would take place by the end of March, and the second reading in the parliament would follow immediately after. He noted that the law should be adopted by the summer, although Kozak disagreed with him, saying that he expected these procedures to be completed in 2026. Kozak added that he was an optimist and believes that the draft law will pass all readings in the Verkhovna Rada, be signed, and that crypto will be legalized and income from it will be taxed from 2026. According to Kozak, investors and businesses that use crypto in their activities were not against replenishing the state budget, but the final rate was very important. The consensus of this community is 5%, so many Ukrainians are ready to pay with income, he added. However, the state was still discussing standard taxation with a proposed 18% tax on the income of individuals plus 5% military levy. Ukrainians who invest before the law comes into force will pay 23% of the entire asset and not from the income received because they will not be able to prove the origin of their original finances. “I am inclined to the fact that there should be a small tax – about 5% to 10%. All incomes of citizens should be taxed, because our state lives on this money, our army fights, we buy weapons and maintain security.” -Taras Kozak Hetmantsev previously cautioned that ‘Ukrainians should have no illusions about the introduction of benefits’. He added that the crypto market was not going to receive a low rate, but there would be ‘an ordinary model of taxation of operations from securities’ when all investment profits were taxed. People’s Deputy says no preferential taxation conditions for crypto after legalization Hetmantsev stated at the EP forum “Prospects for Investments Within the Country” that while Ukraine was most likely to legalize crypto in Q1 of 2025, ‘one should not count on preferential taxation conditions’. He also said that there will be no tax breaks for crypto, and taxation will be applied according to the securities model, where profits will be taxed when assets are converted into currency. The head of the Verkhovna Rada Tax Committee explained that Ukrainian officials were in consultations with European experts and the IMF, and they were cautious about using crypto with tax benefits due to the possibility of tax evasion in traditional markets. Hetmantsev emphasized the urgency of passing the crypto legislation, arguing that delays could hinder Ukraine’s ability to attract foreign investment in crypto-based industries. According to Hetmantsev, if the law is enacted, Ukraine will join a growing list of countries formally integrating crypto into their financial and tax systems. However, industry leaders stressed that taxation policies will play a crucial role in determining whether the crypto market will flourish or struggle under regulatory pressure. Cryptopolitan Academy: Coming Soon - A New Way to Earn Passive Income with DeFi in 2025. Learn More
