Ukraine Parliament Passes First Reading of Crypto Legalization Bill with 23% Tax Rate

Ukraine’s parliament passed the first reading of its crypto legalization bill with 246 votes, establishing a 23% combined tax rate on virtual asset profits while addressing critical regulatory gaps that have enabled billions in illicit ￰2￱ legislation proposes an 18% personal income tax plus 5% military levy on crypto gains, with preferential 5% rates for fiat conversions during the first year of ￰3￱ Yaroslav Zhelezniak confirmed the bill’s passage but noted significant changes expected before the second reading. LATEST: Ukraine to impose tax on crypto! 18% personal income tax + 5% military ￰4￱ tax rates of 5% and 9%. This is higher than the 5%-10% tax range suggested back in ￰5￱ — Coin Bureau (@coinbureau) April 9, 2025 The regulatory authority remains undetermined between the National Bank of Ukraine and the National Securities and Stock Market Commission, while implementation details require further parliamentary ￰6￱ vote comes as Ukraine faces estimated losses of at least $10 billion in stolen funds and tax revenue due to insufficient crypto regulation, according to the Royal United Services Institute.

Over-the-counter markets and wartime vulnerabilities have transformed the country into a growing hub for money laundering and cyber-enabled ￰7￱ Financial Vulnerabilities Drive Regulatory Urgency RUSI warned that without urgent reforms, Ukraine risks further exploitation of its financial system while losing vital tax ￰8￱ security think tank identified Ukraine-specific risks associated with OTC activities, its role as a threat hub, and the role of crypto in funding the procurement of sanctioned components for Russian military ￰9￱ adopting virtual asset legislation in early 2022, Ukraine has failed to implement the framework due to the absence of tax ￰10￱ EU accession requirements, the country must align crypto rules with European standards by the end of 2025 or face potential Financial Action Task Force status ￰11￱ may be missing out on at least $10 billion in stolen funds and lost tax revenue due to insufficient regulation of its crypto sector. #Ukraine #Crypto ￰0￱ — ￰12￱ (@cryptonews) September 2, 2025 Domestic criminal networks exploit vulnerable citizens through “money mule” schemes costing an estimated $24 million ￰13￱ operations offer as little as $120 for individuals to launder money through their bank accounts, while Telegram-based drug trafficking operations accept crypto payments.

Russian-linked crypto laundering activities also spread beyond Ukraine through networks in Kyrgyzstan and other regional ￰14￱ and US sanctions targeted networks tied to rouble-pegged stablecoin A7A5 and exchanges suspected of continuing sanctioned Garantex operations after the March 2025 law enforcement disruption. Kyrgyzstan’s transformation into a crypto hub following its January 2022 virtual asset law enabled Russian sanctions evasion ￰15￱ crypto activity surged to $4.2 billion in 2024 while numerous shell entities reused addresses and contact information, facilitating transactions for sanctioned Russian paramilitary ￰16￱ Labs analysis revealed coordination between disrupted Garantex operations and new Kyrgyz-registered entities like Grinex and ￰17￱ platforms exhibited similar transaction patterns while facilitating withdrawals using Russian stablecoin ￰18￱ Tax Competition Intensifies as Crypto Revenue Potential Emerges Ukraine’s proposed military levy helps fund its defense efforts while developing comprehensive taxation frameworks based on international ￰19￱ legislation includes preferential rates for specific categories alongside standard income tax applications to virtual asset ￰20￱ previously introduced draft legislation allowing the National Bank of Ukraine to hold Bitcoin and other cryptocurrencies in national ￰21￱ proposal would authorize the central bank’s discretion over digital asset allocation timing, methods, and volumes, without mandating crypto ￰22￱ the global stage, Thailand has recently implemented five-year personal income tax exemptions on crypto capital gains through licensed platforms, effective from January 2025 to December ￰23￱ government anticipates over 1 billion baht in additional tax revenue through indirect economic activity despite the exemption ￰24￱ Thailand, Japan’s crypto investors face income tax rates of up to 55% on profits, prompting industry association surveys to reveal that 84% of current holders would increase their purchases under a flat 20% capital gains ￰25￱ Japan Blockchain Association submitted reform petitions advocating capital gains treatment over current income tax ￰26￱ York Assembly bill seeks a 0.2% excise tax on crypto and NFT transactions, targeting the digital asset sector for substance abuse prevention funding. #Crypto #Tax ￰1￱ — ￰27￱ (@cryptonews) August 15, 2025 In the United States, New York Assembly Member Phil Steck has also introduced a 0.2% excise tax on all digital asset transactions , aiming to generate revenue for upstate substance abuse prevention ￰28￱ proposal places compliance responsibility on transaction facilitators, creating potential challenges for exchanges and DeFi ￰29￱ authorities are advancing coordinated crypto tax enforcement through the OECD’s Crypto-Asset Reporting Framework , which mandates automatic information exchange by ￰30￱ G20 nations pledged adoption, while implementation remains uneven across jurisdictions with varying regulatory approaches.