Ukraine’s parliament, the Verkhovna Rada, has approved the first reading of a bill that introduces taxation on cryptocurrency assets. The proposed legislation would impose taxes of up to 23% on profits derived from crypto transactions. This initiative marks a significant step toward legalizing and regulating the rapidly growing crypto sector within the country.

The bill aims to bring clarity to Ukraine’s legal framework regarding digital assets, an area that has remained largely unregulated until now. Lawmakers argue that the move will help prevent illicit activities, improve transparency, and attract foreign investment by aligning Ukraine’s laws with international standards.

While the decision has received support from parts of the government and financial sector, crypto investors and startups have raised concerns about the high tax rate. Critics warn that the 23% levy could discourage innovation and drive businesses away to more crypto-friendly jurisdictions unless balanced with incentives.

Ukraine has been positioning itself as a forward-thinking digital economy, particularly amid ongoing geopolitical and economic challenges. The implementation of this crypto tax law is expected to significantly influence how blockchain and fintech companies operate within the country in the coming years.