The Verkhovna Rada has passed in the first reading draft law №10225-д, which provides for the legalization of the virtual assets market in Ukraine and establishes rules for their taxation.
According to MP Yaroslav Zheleznyak (Holos faction), 246 deputies voted in favor of the bill as a basis.
The law sets a general tax rate of 18% on profit and 5% military levy for transactions with virtual assets. During the first year after the law comes into effect, a preferential 5% rate will apply for converting assets into fiat currency.
Zheleznyak noted that many amendments will be made to the bill before the second reading.
According to the committee chair Danylo Hetmantsev, a virtual asset is defined as a special type of digital property that exists electronically thanks to distributed ledger (blockchain) technology. Virtual assets are not money and cannot be used as an official means of payment in Ukraine.
The bill divides virtual assets into three categories:
- Asset-backed tokens – whose value is stabilized by linking to assets such as currency or property;
- Electronic money tokens – tied to a single official currency;
- Other virtual assets – assets not included in the first two types.
For individuals, the law proposes separate taxation of income from virtual asset transactions. Taxable profit will be the difference between sales revenue and acquisition costs during the year. For assets purchased before the law takes effect, individuals can apply a preferential 5% PIT rate if sold in 2026.
For legal entities, new adjustments to financial results are introduced (similar to taxation of securities transactions), with expenses determined by the Ministry of Finance on the regulator’s submission.
Issuance, placement, sale, exchange, and redemption of virtual assets are not subject to VAT, except for NFT operations and assets representing the right to demand property transfer or services.
Service providers dealing with virtual assets for Ukrainian residents must register with controlling authorities and submit annual reports on transactions.
Failure to comply will incur fines applied at reduced rates during the transition period: 10% in 2026, and 25% from 2027 to 2029.
Hetmantsev emphasized that the law aims to establish clear rules for market participants. Legalization of crypto could significantly boost the budget: according to a Global Ledger study, if the crypto market had been legalized earlier, Ukraine could have collected about UAH 8.34 billion from registered crypto exchanges (at 18%) and up to UAH 6.53 billion from personal income taxation in 2021–2024.
The changes to the Tax Code are expected to take effect on January 1, 2026.
