Verkhovna Rada backs cryptocurrency market legalization: details

The bill’s authors stated that “Ukraine’s crypto market can no longer operate under Wild West rules,” emphasizing that regulating the sector is long overdue.

Zheleznyak noted that the bill includes taxation rules for virtual assets, with a standard 18% personal income tax plus a 5% military levy on profits, and a preferential 5% tax rate for the first year on conversions to fiat currency.

The regulator—either the National Bank of Ukraine (NBU) or the National Securities and Stock Market Commission (NSSMC)—remains undecided.

Getmantsev, one of the bill’s initiators, explained that the legislation defines virtual assets as a special type of property, not recognized as money or a legal means of payment in Ukraine.

The bill categorizes virtual assets into three groups:

• Asset-referenced tokens, stabilized by ties to assets like currency or property;
• Electronic money tokens, linked to a single official currency;
• Other virtual assets, encompassing those not covered by the first two categories, with the regulator determining their classification.

The bill proposes that public offerings of virtual assets require a “white paper” detailing the asset, issuer, and risks. Trading platforms would also face regulated procedures, including authorization and disclosure requirements.

Zheleznyak indicated that significant amendments are planned before the second reading.