Ukraine’s parliament is preparing to review a major new law, in its first reading in late August 2025, that would officially legalize digital assets, including cryptocurrencies like Bitcoin and Ethereum, while aligning with European standards. The law aims to bring clarity and legitimacy to the country’s expanding crypto market.
How It Works: Tax and Legalization
- Legalize Past Crypto Holdings
Individuals may declare previously acquired digital assets by paying a 5% personal income tax plus a 5% military contribution, totaling 10%. - Aligning with European Standards
The draft law is designed to match EU regulatory frameworks, especially the Markets in Crypto Assets (MiCA) regulation.
National Bank’s Role and Ukraine’s Bitcoin Holdings
- Bitcoin in Reserves?
A related proposal would allow Ukraine’s central bank to hold Bitcoin in its national reserves. Ukraine already holds approximately 46,351 BTC, making it one of the largest government crypto holders globally. - But Not Legal Tender
Ukraine’s central bank cautions that while digital assets will be regulated, cryptocurrencies will not replace the hryvnia or be used as legal payments. Strict oversight remains critical to preserving monetary control and stability.
Why It Matters
- Legal recognition of crypto which brings your assets under formal protection and regulation.
- One-time 10% tax as well as military charge, meaning a simple way to legalize past holdings.
- Aligning with EU rules that results in added transparency and boosted investor confidence.
- Central bank crypto part of reserves, ensue signals national confidence in digital assets.
This initiative is a big step toward bringing crypto into Ukraine’s formal financial system, making it safer, cleaner and more transparent for everyone.
Summary
Ukraine plans to legalize cryptocurrencies through a new law set for parliamentary review in August 2025. Under the proposal, people can legalize their crypto holdings by paying a combined 10% tax (5% income + 5% military). The law aligns with European regulations and could allow Ukraine’s central bank to include Bitcoin in its reserves, though crypto will not replace the national currency.
