Ukraine to review comprehensive crypto legislation

This week, the Ukrainian Parliament’s Committee on Finance, Tax and Customs Policy will review a comprehensive draft law aimed at regulating cryptocurrency circulation in the country. The document addresses key aspects such as taxation, the legal status of digital assets, and the roles of regulatory bodies.

200 Pages of Crypto Regulation

The announcement was made by committee head Danylo Hetmantsev, who stated that the draft law spans 200 pages and is a «complex document that covers all core issues related to crypto assets.» It outlines the mechanisms for crypto circulation, defines the responsibilities of state authorities, and sets out tax provisions.

Taxation Only on Profit

The proposed model introduces a simple taxation approach: taxes will only apply to actual profits. If a user holds cryptocurrency without changes to the balance, it will not be taxed. The tax base will be calculated as the difference between the purchase cost and sale proceeds of digital assets within the year.

Additionally, the law will include a transitional period: for one year after it comes into force, Ukrainian citizens will be able to declare their crypto income at a preferential tax rate of 5%, without the need to provide documentation for initial acquisition costs.

More details are expected following the committee meeting scheduled for April 25, where Hetmantsev promised to disclose the key outcomes of the discussion.