Ukraine’s parliament just took a major step toward legalizing cryptocurrency by passing the first reading of a comprehensive crypto tax bill. With 246 votes in favor, lawmakers approved a framework that would impose a 23% combined tax rate on all virtual asset profits.
The tax structure breaks down into an 18% personal income tax plus an additional 5% military levy, which makes sense given the country’s ongoing defense needs. There’s also a sweet deal for early adopters – anyone converting crypto to regular currency during the first year would only pay 5% tax instead of the full rate.
This isn’t just about collecting taxes though. Ukraine has been bleeding money due to poor crypto regulation, with experts estimating at least $10 billion lost to stolen funds and missed tax revenue. The war has made things even worse, turning the country into a hotspot for money laundering and cybercrime.
Criminal networks have been taking advantage of vulnerable citizens through “money mule” schemes that cost the country around $24 million every month. These operations pay people as little as $120 to let criminals use their bank accounts for laundering money.
The timing is crucial since Ukraine needs to align its crypto rules with European standards by the end of 2025 to meet EU membership requirements. Right now they’re racing against the clock to get everything sorted.
Conclusion
Ukraine’s parliament approved crypto legalization with 23% tax rates to combat $10 billion in illicit flows while meeting EU accession requirements by 2025.
Also Read: MEXC’s Latest Security Report
