Overview
Ukraine’s long-anticipated bill on the legalization of the virtual assets market continues to move through the legislative process but faces delays due to the large volume of proposed amendments.
According to Member of Parliament Olga Vasylevska-Smaglyuk, over 2,500 amendments have been submitted to the draft law, significantly extending the timeline for consideration in the second reading.
The bill, adopted in the first reading on September 3, aims to legalize crypto operations, set taxation rules, and establish a regulatory framework for the virtual assets sector — a crucial step toward aligning Ukraine with EU MiCA standards and building a transparent digital economy.
Core Provisions of the Bill
The proposed legislation introduces clear tax rules for crypto transactions and establishes a legal foundation for virtual asset operations in Ukraine.
Key provisions include:
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General tax rate: 18% income tax plus 5% military levy on profits from virtual assets.
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Preferential rate: For the first year after enactment, a 5% reduced tax applies to conversions of crypto into fiat currency.
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Regulatory framework: The Cabinet of Ministers, in coordination with the National Bank of Ukraine (NBU), will determine the primary regulator. The National Securities and Stock Market Commission (NSSMC) remains a candidate for oversight responsibilities.
These measures would bring Ukraine’s crypto sector into a transparent, EU-compliant framework — critical for attracting investors and protecting users.
Legislative Progress and Challenges
The Finance, Tax, and Customs Policy Committee is currently reviewing all submitted amendments. The process includes working groups with industry representatives and regulators to finalize the text before presenting it to Parliament.
Vasylevska-Smaglyuk confirmed that the amendment phase has closed, and review work will begin shortly. However, given the volume and complexity of changes, she noted that no date has yet been set for the final vote in the Verkhovna Rada.
Some amendments, she added, are “spam in nature,” which complicates the review. The key unresolved issue remains the designation of the main regulator, as both the NBU and NSSMC are being considered for the role.
Strategic Importance and Expert Views
Fintech leaders emphasize that legalization will have a transformative impact on Ukraine’s financial ecosystem.
According to Olena Sosyedka, co-founder of Concord Fintech Solutions, the bill is a win-win for the state and the private sector:
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It will protect investors and users, attract foreign capital, and create new jobs.
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The state could gain tens of billions of hryvnias in annual tax revenue, strengthening defense funding and reconstruction programs.
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Transparent taxation and reporting will encourage businesses to move out of the shadow market, making Ukraine a regional financial hub for digital assets.
Outlook
Despite the delay, lawmakers remain optimistic about adopting the bill in the near term.
The virtual assets law is a central part of Ukraine’s digital transformation and EU integration roadmap, bringing the regulatory environment closer to the Markets in Crypto-Assets (MiCA) framework.
Once passed, the law is expected to:
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Provide legal certainty for crypto businesses and exchanges.
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Enable banking integration and fiat on/off ramps.
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Strengthen investor trust and international partnerships.
While the exact timing of the vote remains uncertain, the bill’s passage would mark a historic milestone — turning Ukraine into one of the first Eastern European nations with a fully legalized and regulated crypto market.
