On September 3, the Verkhovna Rada voted in the first reading on draft law No. 10225-d, which proposes to legalize the virtual assets market (crypts) in Ukraine and determine the rules for their taxation.
This was reported by the MP from “Voice” Yaroslav Zheleznyak.
246 MPs voted in favour.
The purpose of the bill is to create a legal framework for regulating the turnover of virtual assets in Ukraine, ensuring their legal use, taxation, and protection of the rights of market participants.
Main provisions of the project
As explained by the head of the Councilʼs Finance Committee Danylo Hetmantsev the document proposes to establish a definition of a virtual asset — a special type of digital object (property) that exists in electronic form thanks to distributed ledger technology (blockchain).
Hetmantsev emphasizes that according to the document, virtual assets are not money and cannot be used as an official means of payment in Ukraine. Their legal regime is close to the regime of movable property from the point of view of civil law. At the same time, the draft version proposed for the first reading provides for the identification of electronic money tokens with electronic money within the meaning of the law "On Payment Services".
The project divides all virtual assets (VA) into three main categories:
- asset-backed tokens — their value is stabilized by being tied to assets, such as currency or property;
- electronic money tokens — tied to one official currency;
- other virtual assets — a category that includes assets that do not belong to the first two types. Here, the MPs proposed a model according to which the regulator would determine which virtual assets (except for asset-backed tokens and electronic money tokens) would belong to this category.
According to the draft, ownership of virtual assets is acquired through issuance, transaction, law or court decision and is confirmed by possession of access means, such as cryptographic keys. The law provides for a presumption of legal ownership, unless a court establishes otherwise.
A public offering of a VA requires the preparation of a “white paper” – a document with detailed information about the asset, the issuer and the risks. Admission to trading on trading platforms is also regulated by clear procedures, including authorization and disclosure.
Providers of services related to the turnover of VA (storage, trading, transfer, etc.) must be authorized, meet organizational and financial requirements, and ensure client protection.
It also provides for the protection of asset owners and clients through transparency, disclosure of information and measures against insider trading, market manipulation and unlawful disclosure of information.
How virtual assets are proposed to be taxed
The draft defines the issue of cryptocurrency taxation. Here are the main provisions.
Regarding personal income tax, the project proposes:
- to conduct separate taxation (from other income and other investment income) of income from VA transactions;
- tax only the profit from VA transactions received during the year as the difference between the sales proceeds and the costs of acquiring VA during the year;
- an individual must declare income and pay taxes themselves;
- not to tax: a) income from transactions on the exchange of VA for other VA, as well as income from the sale of VA within the limits of one minimum wage; b) the value of VA received as a result of their emission (creation) or free transfer from their issuers or offerors and/or received exclusively in exchange for personal data of an individual;
- losses incurred in previous periods (if sold cheaper than bought — this is a risky market), should be taken into account before they are paid off (with some exceptions);
- For VAs purchased before this law comes into force, if they are sold during 2026 , individuals will have the right to choose a preferential personal income tax rate of 5%.
Regarding corporate income tax:
- new differences are introduced to adjust the financial result (similar to how securities transactions are taxed);
- the list of costs taken into account when carrying out transactions with VA will be determined by the Ministry of Finance upon submission by the regulator.
Regarding value added tax. The project defines what is not subject to VAT:
- operations on the issue (issuance), placement in any form of management, sale, exchange, redemption of virtual assets, except for: a) sale and exchange of NFTs; b) sale and exchange of VAs that certify the right to demand the transfer of property or the provision of a service;
- services of service providers related to the turnover of VA (except for consulting services, which are taxed on a general basis).
Regarding the simplified taxation system:
- Single tax payers are prohibited from conducting transactions with VA;
- Providers of services related to the turnover of VA do not have the right to use the simplified taxation system.
Administration
- service providers related to VA turnover that provide services to residents of Ukraine are required to register with regulatory authorities and submit an annual report on VA transactions with individuals and legal entities that are residents of Ukraine (this is a step towards the gradual introduction of CARF and implementation of the DAC8 directive);
- Fines are provided for service providers related to the turnover of VA for failure to fulfill these obligations. During the transition period, they will be reduced (in 2026 — 10% of the established fine, during 2027-2029 — 25% of the established fine).
The document still needs to be voted on in the second reading, and then signed by the President of Ukraine. Zheleznyak believes that a large number of changes will be made to the draft before the second reading.
For more news and in-depth stories from Ukraine, please follow us on X.