Crypto Legalization in Ukraine Delayed: Bill Still Not Submitted to Parliament
The draft law aimed at regulating the virtual asset market in Ukraine is ready for consideration, but it is still not on the Verkhovna Rada’s agenda. According to MP Yaroslav Zhelezniak, its consideration is currently blocked.
To recap, the draft law on virtual assets was announced on April 22. It spans over 200 pages and consists of two parts: the regulation of virtual assets in Ukraine and the taxation of income from crypto assets. In short, it proposes a 5% tax on profits.
We provided a detailed overview of the draft law here.
According to Zhelezniak, the Verkhovna Rada Committee on Finance, Taxation and Customs Policy unanimously supported the draft law. While the document contains some imperfections, they were expected to be addressed through amendments during the second reading. However, it has not yet been put to a vote in parliament and has been withdrawn from consideration for an indefinite period.
Why this matters
Ukrainians have been awaiting crypto tax legislation since 2021 when the Rada passed the Law on Virtual Assets. The President signed it into law in 2022, but it will only come into effect once the Tax Code is amended. The reform is expected to generate significant budget revenues — particularly important during the full-scale war.
«Legalization of crypto could have a major impact on the state budget. According to a Global Ledger study on taxation potential, had the crypto market been legalized earlier, the state could have collected about UAH 8.34 billion in taxes from crypto exchanges registered in Ukraine (at an 18% rate) and up to UAH 6.53 billion from personal income taxation between 2021 and 2024,» said Danylo Hetmantsev, the Chairman of the Verkhovna Rada Committee on Finance, Taxation and Customs Policy.
Crypto Legalization in Ukraine Delayed: Bill Still Not Submitted to Parliament
The draft law aimed at regulating the virtual asset market in Ukraine is ready for consideration, but it is still not on the Verkhovna Rada’s agenda. According to MP Yaroslav Zhelezniak, its consideration is currently blocked.
To recap, the draft law on virtual assets was announced on April 22. It spans over 200 pages and consists of two parts: the regulation of virtual assets in Ukraine and the taxation of income from crypto assets. In short, it proposes a 5% tax on profits.
We provided a detailed overview of the draft law here.
According to Zhelezniak, the Verkhovna Rada Committee on Finance, Taxation and Customs Policy unanimously supported the draft law. While the document contains some imperfections, they were expected to be addressed through amendments during the second reading. However, it has not yet been put to a vote in parliament and has been withdrawn from consideration for an indefinite period.
Why this matters
Ukrainians have been awaiting crypto tax legislation since 2021 when the Rada passed the Law on Virtual Assets. The President signed it into law in 2022, but it will only come into effect once the Tax Code is amended. The reform is expected to generate significant budget revenues — particularly important during the full-scale war.
«Legalization of crypto could have a major impact on the state budget. According to a Global Ledger study on taxation potential, had the crypto market been legalized earlier, the state could have collected about UAH 8.34 billion in taxes from crypto exchanges registered in Ukraine (at an 18% rate) and up to UAH 6.53 billion from personal income taxation between 2021 and 2024,» said Danylo Hetmantsev, the Chairman of the Verkhovna Rada Committee on Finance, Taxation and Customs Policy.
