Overview

• The Verkhovna Rada approved draft law No. 10225-d in its first reading with 246 votes, advancing plans to legalize and tax virtual assets.
• The proposal sets an 18% tax on profits from virtual asset transactions plus a 5% military levy, with a temporary 5% rate for converting crypto to fiat during the first year after enactment.
• Tax Code amendments are slated to take effect on January 1, 2026, and significant revisions are expected before the bill’s second reading.
• Regulatory oversight has not been finalized, with the National Bank of Ukraine and the National Securities and Stock Market Commission under consideration as reports diverge on whether the NBU will lead.
• The draft defines virtual assets as digital property not recognized as legal tender, exempts most VA operations from VAT (excluding NFTs and certain rights tokens), requires provider registration and reporting, and phases in penalties during the transition.