Ukraine Crypto Tax Law: Rada Prepares Second Reading

Ukraine's Verkhovna Rada is approaching the second reading of bill No. 10225-d, which establishes rules for taxing income from virtual asset transactions. The bill has already received support from 246 lawmakers in its first reading, and a working group is intensively preparing the final version of the document for a repeat vote.

Key provisions of the bill

Bill No. 10225-d creates a separate taxation regime for virtual asset operations, distinct from other income types and investment profits. Tax will be calculated on an annual basis: all income from cryptocurrency sales during the year will be reduced by acquisition costs incurred during the same year.

• Standard rate: 18% personal income tax + 5% military levy = 23% on profit
• Preferential 2026 rate: 5% for assets acquired before the law takes effect
• Tax-exempt: crypto-to-crypto swaps and sales below the minimum wage (8,000 UAH)
• Regulator: NSSMC as primary, NBU as auxiliary

Preferential period: how it works

One of the most important provisions for current cryptocurrency holders is the preferential taxation period in 2026. If a citizen purchased cryptocurrency before the law came into effect and sells it during 2026, they pay only 5% tax instead of the standard 23%. This incentivizes legalization of existing cryptocurrency holdings and voluntary declaration.

Starting from 2027, the standard 23% rate will apply to all transactions. Therefore, those planning to buy Bitcoin with hryvnia or other cryptocurrencies should already consider the tax implications of their investments.

Who will regulate the market

The bill designates the National Securities and Stock Market Commission (NSSMC) as the primary regulator of the virtual assets market. The National Bank will play an auxiliary role, focusing on financial monitoring and currency control issues.

The NSSMC has already outlined three key directions for future regulation: implementation of the international Travel Rule standard for tracking cryptocurrency transfers, the CARF standard for automatic information exchange with tax authorities, and restrictions on companies with Russian capital or ties to Russia.

Impact on the cryptocurrency market

According to preliminary estimates, cryptocurrency legalization could bring 14 to 15 billion UAH annually to the state budget. Ukraine holds one of the world's leading positions in cryptocurrency penetration, and a significant portion of this market still operates in a gray zone.

For exchange users, the law's adoption will mean greater transparency and legal certainty. Transactions through PrivatBank and other banks will become legally protected, and the risks of account blocking due to cryptocurrency transactions will decrease significantly.

International context

Ukraine is moving in line with the global trend toward cryptocurrency regulation. The European Union has already implemented the MiCA regulation as of January 1, 2026, while the United States is actively working on the CLARITY Act and GENIUS Act for stablecoins. The Ukrainian approach combines elements of the European model with local specifics - specifically, restrictions on companies with ties to Russia have no analogues in Western legislation.

The law's adoption is also an important step toward EU integration, as it brings the regulatory framework closer to EU standards and demonstrates Ukraine's readiness for transparent digital asset regulation.

Prospects for cryptocurrency exchange

Legalization and taxation of cryptocurrencies will have a direct impact on the exchange market. On one hand, official recognition will create a safer and more predictable environment for operations with Bitcoin and other digital assets. On the other hand, the need to pay taxes will increase the in short cost of transactions, especially after the preferential period ends.

Market participants should take advantage of the preferential 5% rate in 2026 to optimize their tax burden before the law fully takes effect with the 23% rate. Exchangers and P2P platforms will also need to adapt their processes to new KYC and AML requirements.