Ukraine’s parliament plans to conduct the initial reading of a crypto regulation bill by late August, according to government officials. The legislation, if approved, could establish a legal framework for digital assets aligned with European standards.

“The preparation of a draft law on taxation of transactions with virtual assets is currently in the final stage,” Danylo Hetmantsev, head of the parliamentary committee on finance, tax and customs policy, told Coinpectra.

“It is estimated that its submission for the first reading in the Verkhovna Rada is scheduled for the end of August 2025.”

A key provision in the bill is the ability for individuals to come forward and legalize previously acquired digital assets. Under the regulation, holders seeking to legalize assets would pay a 5% personal income tax and 5% military duty, Hetmantsev reportedly said.

Ukraine has a history of regulatory starts and stops pertaining to the crypto industry. In 2022, the Verkhovna Rada, the country’s unicameral parliament, passed legislation legalizing crypto exchanges. However, progress on taxing crypto transactions has been slow.

In December 2024, the government disclosed plans for new legislation that would tax cryptocurrency trading similarly to securities, applying taxes when assets are converted into fiat currency.

In April 2025, Ukraine’s financial regulator proposed taxing certain crypto transactions at a rate of up to 23% but left room for excluding crypto-to-crypto and stablecoins transactions.

Related: What the Russia-Ukraine war has revealed about crypto

Ukraine follows other countries with taxation and reserve bills

In another crypto effort, legislators introduced in June a bill to allow the National Bank of Ukraine to include cryptocurrencies such as Bitcoin (BTC) in its reserve. The plan was announced in May at a conference in Kyiv.

According to BitcoinTreasuries.net, Ukraine is the fourth-largest holder of Bitcoin among governments, with 46,351 BTC worth $5.4 billion at this writing.

If signed into law, the legislation would place the country among the few jurisdictions with a codified cryptocurrency reserve. US President Donald Trump signed an executive order creating a strategic Bitcoin reserve in the country on March 6, while Kazakhstan announced plans to form a similar crypto reserve on June 30.

Crypto activity has surged in Eastern Europe, with the region receiving $499 billion worth of crypto flows between July 2023 and June 2024.

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