The virtual assets law is approaching final approval, with lawmakers aligning on oversight authority and taxation rules for digital asset transactions. Info links: minfin.com.ua
Regulatory architecture taking shape
Ukraine is nearing completion of its regulatory framework for digital assets. The National Securities and Stock Market Commission (NSSMC) is expected to become the primary supervisory authority for the sector once parliament adopts the virtual assets bill in its second reading. According to parliamentary finance committee chair Danylo Hetmantsev, the commission would assume core oversight responsibilities, while the National Bank of Ukraine would act in a supporting capacity.
Legislative status
The draft law governing circulation and taxation of cryptocurrencies and other virtual assets passed its first reading on September 3, 2024. Final adoption was delayed due to unresolved disagreement over which institution should regulate the market. Work on the legislation has since intensified, and the committee expects the bill to return to parliament for a second reading in the near term.
Tax model for crypto transactions
Bill No. 10225-d introduces a phased taxation framework for digital asset income. During the first year after enactment, individuals would pay a preferential 5% personal income tax on crypto gains. The tax would apply only to net profit—the difference between acquisition cost and sale price. After the transition period, standard investment taxation would apply: 18% personal income tax plus a 5% military levy.
Shift in regulatory stance
The proposed supervisory structure reflects a change in policy direction. In autumn 2024, lawmakers considered assigning regulatory authority to the central bank, citing concerns about the commission’s institutional capacity. However, the position shifted following leadership changes within the NSSMC. President Volodymyr Zelensky dismissed former chair Ruslan Magomedov in late 2024, and Oleksii Semeniuk assumed the role in January 2025.
Outstanding issues before adoption
Before final passage, legislators must still determine the length of the transition period for asset legalization and define which categories of services will be exempt from taxation. These provisions will shape the operational environment for market participants, including investors, exchanges, and fintech firms.