New Crypto Tax Proposal Targets Transparency
Ukraine is preparing to reshape its crypto market by imposing a 10% tax on cryptocurrency holdings. Under the plan, half of the tax will go to personal income tax while the other half will be allocated to a military levy. Authorities say the move aims to align the nation’s digital asset rules with EU standards and make the market more transparent.
By the end of August 2025, the Verkhovna Rada (Ukraine’s parliament) will review a comprehensive crypto regulation bill designed to protect crypto owners, exchanges, and companies. Parliamentary finance and tax committee chair Danylo Hetmantsev stressed the government’s position:
Details of the 10% Crypto Tax
The proposed tax framework allows owners to declare their crypto holdings, promoting compliance and transparency. It breaks down into 5% personal income tax and 5% military contribution, a reflection of Ukraine’s ongoing security needs.
Officials view the tax not just as a revenue tool but as a compliance mechanism. By requiring clear ownership records and tracking wallet transactions, Ukraine hopes to reduce unlawful crypto activity and bring the sector in line with international oversight standards.
Why the Bill Goes Beyond Taxation
The legislation also seeks to address global regulatory expectations. It aligns with frameworks like the EU’s Markets in Crypto-Assets (MiCA) regulation and Financial Action Task Force (FATF) recommendations. Authorities emphasize that the bill will ensure digital assets are integrated without weakening financial surveillance systems.
Government officials have made it clear that crypto transaction monitoring will become more robust. This means less obfuscation of transactions and more regulatory supervision for exchanges, wallets, and large crypto transfers.
National Bank of Ukraine Considers Reserves in Crypto
Andriy Pyshnyy, Governor of the National Bank of Ukraine (NBU), confirmed that regulators will not grant cryptocurrencies legal tender status but will still regulate them as digital assets. He revealed that the NBU is considering adding cryptocurrencies to the national reserves, a rare move globally.
This approach reflects Ukraine’s attempt to embrace innovation while avoiding risks to monetary stability. By regulating rather than replacing the hryvnia, Ukraine is aiming for a balanced integration of crypto into its economy.
A Step Toward European Integration
Ukraine has been crypto-friendly since 2022, legalizing crypto exchanges and supporting high adoption rates. Lawmakers see the new tax bill as crucial for reducing regulatory uncertainty, fostering responsible adoption, and preparing for deeper EU integration.
While some in the crypto community may view the 10% tax as burdensome, it signals a serious commitment to international best practices. More importantly, it sets a precedent for transparent and legal treatment of digital assets, positioning Ukraine as a model for emerging economies seeking to integrate crypto without destabilizing their financial systems.
