Draft Law on Taxation and Regulation of Cryptocurrencies in Ukraine Passed First Reading

On September 3, 2025, the Verkhovna Rada of Ukraine adopted in the first reading draft law No. 10225-d “On Amendments to the Tax Code of Ukraine and Certain Other Legislative Acts of Ukraine on the Regulation of the Turnover of Virtual Assets”. The adoption of this document was an important step towards creating a legal framework for the functioning of the cryptocurrency, token and other digital asset market in Ukraine. The draft law is designed to provide legal certainty for market participants, investors and state authorities, promote the development of the digital economy and attract investment.

This draft law provides for the classification of virtual assets into three categories: tokens tied to real assets (for example, USDT), electronic money tokens, and other tokens, the types of which will be determined by the regulator.

A separate procedure for accounting for income from transactions with virtual assets has been defined for individuals. The profit received as the difference between the proceeds from the sale and the documented costs of acquiring such assets during the year will be taxed. Citizens must independently keep records of financial results, submit an annual tax return, and pay taxes.

For legal entities, new differences are introduced to adjust the financial result before taxation, similar to those in force for securities transactions. The list of expenses that can be taken into account will be approved by the Ministry of Finance of Ukraine upon submission by the regulator. Transactions on the issue, placement, sale, exchange and redemption of virtual assets are exempt from VAT, with the exception of transactions with NFTs and those assets that certify the right to demand the transfer of property or the provision of a service.

The draft law also provides for a transitional taxation period. For assets acquired before the law comes into force, a preferential rate of 5% personal income tax and 5% military levy will apply. In the first year after the law is introduced, a similar preferential rate will apply. Starting in 2027, profits from transactions with virtual assets will be taxed at a general rate of 18% personal income tax and 5% military levy. This means that when buying cryptocurrency for UAH 400,000 and selling it for UAH 600,000 in 2026, taxes reach UAH 20,000, and in 2027 – UAH 46,000.

Special attention will be paid to providers of services related to the circulation of virtual assets, in particular crypto exchanges. They are required to register with the tax authorities within 60 days of the start of activity or by July 1, 2026, if they operated until the end of 2025. Such companies must obtain a license from the regulator, submit an annual report on transactions with virtual assets, and report to the regulatory authorities yearly by January 31. Failure to comply with these requirements results in significant fines: over UAH 130,000 for failure to register and up to 100 minimum wages for failure to submit the report.

At the same time, the text of the draft law is not yet final. Amendments are planned for the second reading, and it is not yet determined which body will become the main regulator of the virtual assets market. However, the adoption of this document can already be considered a key step on the path to legalization and development of the crypto industry in Ukraine. It forms the basis for clear rules of taxation, administration, and supervision to protect the rights of market participants and contribute to the formation of a competitive digital economy.

Draft Law No. 10225-d