Ukraine’s Parliament just dropped a 23% tax bomb on crypto profits, with 246 out of 321 deputies backing the “On Virtual Asset Markets” legislation on September 3, 2025. The hefty rate combines 18% income tax with a 5% military tax. Only crypto-to-fiat conversions get hit, while crypto swaps stay exempt. First-year conversions catch a break at just 5%. Ukraine desperately needs the revenue amid ongoing conflict, and this bold move aims to tame their chaotic digital asset environment while funding defense spending.
Ukraine’s Parliament just green-lit a crypto bill that’s equal parts pragmatic and desperate. The Verkhovna Rada approved the “On Virtual Asset Markets” legislation in its first reading on September 3, 2025, with 246 deputies voting yes out of 321 present. Only one deputy had the audacity to vote against it.
Ukraine’s crypto bill sailed through Parliament with 246 votes—apparently only one deputy dared to dissent.
Here’s the kicker: they’re slapping a whopping 23% tax rate on crypto profits. That breaks down to 18% income tax plus a 5% military tax. Because nothing says “fund the war effort” quite like taxing digital coins.
The math is straightforward enough. Profits get calculated as sales revenue minus what you originally paid. Crypto-to-crypto swaps dodge the tax bullet entirely, which is something. At least they’re not completely insane about it. Similar to Pakistan’s crypto council, the move signals a shift toward structured digital finance.
But wait, there’s a carrot dangling here. Convert your crypto to actual money during the first year after this thing becomes law? You’ll only pay 5% tax. Miss that window and you’re back to the full 23%. Talk about motivation to get moving.
Ukraine isn’t messing around with the regulatory side either. The National Bank of Ukraine or Securities Commission will likely handle oversight duties. The goal is bringing some order to what’s been a Wild West situation.
Considering Ukraine loses an estimated $10 billion annually to crypto-related money laundering and cybercrime, this makes sense. The timing isn’t coincidental. Ukraine desperately needs budget revenue while fighting a war. Crypto taxation revenue gets earmarked partly for military and defense spending.
Plus, they’re trying to align with EU financial regulations as part of their accession efforts. Ukraine already has sky-high crypto adoption rates globally, so this bill actually matters economically. The legislation aims to legalize crypto operations while reducing legal uncertainty for investors and businesses. Sales below the minimum wage will remain exempt from taxation entirely.
Industry folks expect the final version will balance taxation demands with market growth needs. The bill still faces additional readings before final approval, and the text remains subject to amendments. The second reading in the chamber will determine the final regulatory framework and tax structure. But the overwhelming first-reading support suggests Ukraine is serious about formalizing its crypto market, hefty tax rate and all.
