- Ukraine’s finance committee backed bill 10225-d for Parliament’s second reading.
- The draft proposes a 5% tax rate through 2028 for pre-existing crypto holdings.
- If passed, the framework is expected to take effect on July 1, 2027.
Ukraine moved closer to establishing a regulated cryptocurrency market on November 4 after the Verkhovna Rada Committee on Finance, Tax, and Customs Policy recommended that Parliament adopt bill No. 10225-d at second reading and in full.
Committee Chair Danylo Hetmantsev announced the recommendation on his official Telegram channel. The committee had listed the bill for second reading at its November 4 meeting. Parliament must still vote on the measure, so the recommendation does not mean the proposed rules are law.
The bill would set a legal framework for virtual assets, define regulators’ powers, and establish requirements for crypto service providers. It could also complete the process left unfinished after Ukraine adopted its Virtual Assets Law in 2022. That law has not entered into force because it still needs supporting tax legislation, according to the Ukrainian Parliament’s petition portal.
Proposed Rules for Crypto Investors
The bill would establish how gains from crypto transactions are taxed. Virtual asset transactions would be exempt from value-added tax, while taxable income would generally be calculated from the difference between an asset’s purchase and sale prices, using an approach similar to securities.
The draft also proposes that swapping one virtual asset for another would not trigger tax. Profits up to one minimum monthly wage would be exempt. For virtual assets held before the law takes effect, the proposal provides a transition period through the end of 2028 during which a reduced 5% personal income tax rate would apply. These are proposals and may be amended as they pass through the various stages of parliamentary consideration.
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Exchanges and Custodians Would Need Authorization
The bill would create an approval process for crypto exchanges, custodians, and other service providers. Companies would be required to meet certain requirements that seek to make their operations more transparent and accountable. Safeguards include the ability to protect users and new requirements for how to store users’ assets.
The framework would also enhance the monitoring and checking of financial transactions and the origin of funds. These measures would add formal obligations for companies that facilitate trades or hold crypto assets on customers’ behalf, while giving regulators clearer oversight of market participants.
Two Regulators Would Oversee the Market
The proposal assigns supervisory responsibilities to Ukraine’s National Securities and Stock Market Commission and the National Bank of Ukraine. The central bank would handle matters involving electronic money, foreign-exchange supervision, and other areas within its remit.
If Parliament adopts the bill, the law is expected to take effect on July 1, 2027. The committee’s recommendation moves the proposal closer to a final parliamentary vote, but it does not itself launch a legal crypto market. Parliament must still consider the bill at second reading and adopt it as a whole. Until then, the proposed tax treatment and service-provider rules remain pending rather than enforceable requirements.
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Related: Ukraine Shuts Down Crypto Phishing Ring Operating Across 20+ Countries
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