Ukraine, green light for 23% on crypto

Kyiv, September 3, 2025 — Strong signal from the Ukrainian Parliament: in first reading the Verkhovna Rada has approved a bill that provides for a levy of up to 23% on profits from digital assets, combining an income tax of 18% and an additional 5% allocated to military costs, as reported by Verkhovna Rada.

According to data collected by our desk and parliamentary records, the vote in the first reading took place on September 3, 2025, and recorded 246 votes in favor.

Industry analysts observe that the combination of an 18% income tax and a 5% military tax seems designed to increase revenue allocated to defense while still allowing room for technical regulation in the second reading.

In cross-checks with official communications from the Rada and notes from the National Bank of Ukraine, the text is still subject to operational amendments before final approval.

In brief: rates, votes, and what changes immediately

• Base rate: income tax at 18% applied to cryptocurrency gains.
• Additional withdrawal: 5% military tax (bringing the potential withdrawal to 23%), as reported by official sources.
• Transitional facilitation: 5% on fiat conversions in the first year from the effective date, to support the regularization and emergence of capital.
• Initial exemptions: the draft includes favorable regimes for crypto-to-crypto exchanges and for stablecoins, to be confirmed in the subsequent legislative phase.
• Vote: a vote of 246 yes is recorded in first reading.
• Status of the process: the text remains editable before the second reading.

How the Withdrawal Would Work: Operational Rules

In the current framework, the profits generated from the sale or conversion of digital assets are taxable. The combination of income tax (18%) and military tax (5%) results in a potential levy of 23% on gains.

It should be noted that the draft also introduces a reduced rate of 5% for conversions into fiat currency in the first year, with the aim of encouraging the regularization and emergence of capital.

Practical Example

• Standard scenario: capital gain of 10,000 UAH → tax 18% (1,800 UAH) + military tax 5% (500 UAH) = 2,300 UAH total. Net: 7,700 UAH.
• Transitional scenario (conversion to fiat in the first year, if confirmed): rate of 5% on 10,000 UAH = 500 UAH. Net: 9,500 UAH.

From an operational standpoint, the treatment of crypto-to-crypto transactions and stablecoins remains to be clarified: the draft suggests exemptions or preferential regimes, however, the text may be amended before final approval.

Who oversees the market: NBU or Market Authority

The dossier on the regulator remains open. The choice between the National Bank of Ukraine (NBU) and the National Securities and Stock Market Commission will impact supervision, licenses, and compliance procedures for operators.

• If the NBU prevails, the focus will be on financial stability, payments, and anti-money laundering measures.
• If the delegation goes to the Commission, the focus will be on investor protection, market transparency, and combating abuses.

Indeed, the definition of the supervisory perimeter will be decisive for the exchange and for the service providers active in the country.

Impact on Investors and Businesses: Balancing Revenue and Competitiveness

The stated goal is to combine tax certainty and attractiveness. A clear regulatory framework can support domestic operations and encourage the repatriation of capital; on the contrary, high tax rates weigh on net returns and could direct part of the activity towards jurisdictions with lighter tax regimes.

• Strengths: more predictable rules, boost to compliance, and incentive for the emergence of capital.
• Critical Issues: potential capital flight and reduced competitiveness compared to regional hubs with more favorable tax regimes.

That said, context matters: according to the 2025 Chainalysis index, Ukraine ranks among the countries with high adoption of digital assets, in eighth position globally. The new tax framework will need to balance control and competitiveness.

Where to Consult Sources and Documents

The text approved in first reading is identified as the bill on the taxation of virtual assets and is available on the Verkhovna Rada portal.

For regulatory updates, it is useful to consult the official pages of the NBU and the NSSMC. Technical details – bill number, consolidated text, and legislative schedule – will follow with the second reading and the subsequent publication of parliamentary acts.

FAQ

Who falls within the tax perimeter?

Individuals who realize capital gains through the sale or conversion of digital assets into fiat currency or other fiscally relevant instruments.

Are crypto-to-crypto exchanges and stablecoins taxed?

The draft provides for temporary exemptions or preferential regimes for such transactions, although the regulation may be revised before final approval.

When will it come into effect?

The measure is in the legislative process: its entry into force will depend on the outcome of the second reading, any amendments, and the official publication.

Next Steps

In the coming months, the second reading in the chamber, the definition of the regulator, and the drafting of the implementing decrees are expected. Three key issues remain central: calibration of the tax rates, scope of the exemptions, and governance of the supervision.

The evolution of the text will be crucial for the digital strategy and for the tax collection of the Ukrainian state.