Ukraine may legalise cryptocurrency in 2026
Ukraine delays crypto tax bill as lawmakers debate key provisions.
Ukraine’s lawmakers remain locked in debate over crypto taxation as the government pushes to legalize digital assets this year.
In a recent interview on February 7, Taras Kozak, a member of Ukraine’s securities regulator advisory group, suggested that finalizing a new crypto tax bill may take longer than anticipated.
He countered earlier forecasts by Danylo Hetmantsev, head of the Verkhovna Rada’s Committee on Finance, Tax, and Customs Policy, who predicted that a draft would be ready for a first reading in the first quarter and that the law could be adopted by summer 2025. Kozak, however, expressed optimism that the bill might pass all readings and be signed by the end of this year, with taxation on digital asset income commencing in 2026.
Debate on Taxation and Policy Adjustments
The proposed legislation aims to amend Ukraine’s existing framework, established by President Volodymyr Zelensky when he signed the “On Virtual Assets” law in March 2022. However, implementation has stalled due to pending amendments to the Ukrainian Tax Code, resulting in lost tax revenue as exchanges had no legal obligations to pay taxes on crypto revenue.
Kozak emphasized that the final tax rate is crucial; he noted that Ukrainian investors are generally amenable to a modest tax rate—around 5% to 10% on crypto income—as long as it supports state functions, including national defense and security. Additionally, discussions have considered a standard rate of 18% on personal income with a 5% military levy, while investors unable to prove their initial investments might face a tax as high as 23% on their holdings.
Timeline and Broader Implications
While Hetmantsev’s timeline envisaged a draft law ready in early 2025, Kozak believes that crypto legalization in Ukraine could be delayed until next year. This extended timeline highlights the complexity of balancing innovation with regulatory rigor. As Ukraine strives to align with global best practices while securing much-needed tax revenue, the final outcome will be critical in determining the country’s future role in the digital asset landscape.
Recently we wrote, that Ukraine is set to legalize cryptocurrencies by early 2025, marking a significant shift in the country’s approach to digital assets.
