Ukrainian regulator approves legalization of cryptocurrencies

The Verkhovna Rada has passed in the first reading Draft Law No. 10 225-d, which for the first time defines the legal status of virtual assets in Ukraine and establishes rules for their taxation and circulation. The document is still being finalized, but its key provisions are already clear.

The draft law divides virtual assets into three categories:

• asset-linked tokens (e.g., currency or property) with mandatory reservation rules;

• electronic money tokens pegged to the official currency;

• other virtual assets that do not fall into the first two categories and require a white paper with information about the asset and the issuer.

Income from cryptoassets will be taxed at the general rates of 18% personal income tax and 5% military duty (about 23% in total). At the same time, a transitional regime is planned: in the first year after the entry into force, the rate will be 5% for withdrawals in fiat, and in 2026, a 10% option (5% 5%) is possible. These parameters may be clarified before the second reading.

The tax base is defined as profit — the difference between the cost of selling or withdrawing assets in fiat and the price of their acquisition. The tax liability will arise in case of conversion into hryvnia or another currency or in case of sale at a profit.

The draft law also provides for reporting and declaration mechanisms, including the possibility of a one-time legalization of assets at a simplified rate. The final rules will be determined after the document is adopted in the second reading and clarifications from the tax authorities.