Learn about the expected changes in cryptocurrency legislation and how to declare cryptocurrency in 2025 in Ukraine: a complete guide for investors, traders, and entrepreneurs.

Introduction

The cryptocurrency sector has remained dynamic over the past few years. This is because, in wartime conditions, the hryvnia and investments in government bonds (even with fairly high interest rates and no taxation) seem riskier. Therefore, the number of investors and traders is constantly growing: according to Chainalysis, Ukraine is among the top six countries for crypto adoption among the population and generates 2.5% of the total cryptocurrency flow. In 2024 alone, CEX (centralized exchanges) received $343 million in profit from users in Ukraine (5.4% of global profit).

The issue of regulation and legalization remains critically important, as this is not only a promising industry but also a source of income for the Ukrainian treasury. Global Ledger conducted a study, the results of which show that the potential amount of unpaid taxes from legal entities is 8.35 billion hryvnias, as well as 6.53 billion UAH from individuals over the previous three years. Such impressive figures indicate that a law that would clearly regulate and legalize crypto assets is timely. In this article, you will learn the news about progress in this direction and the plans of the responsible authorities regarding the introduction of changes.

Overview of Changes in the Law on Cryptocurrency and Virtual Assets in 2025

On April 24, 2025, Danylo Hetmantsev published news on his Telegram channel that the bill on virtual assets had passed the Committee and was recommended for consideration in the first reading. But let's go back a few years and look at how the attitude of the responsible authorities toward cryptocurrency has changed over time.

From "Monetary Surrogate" to Full-Fledged "Virtual Asset"

• 2014: In Letter No. 29-208/72889, the National Bank classified Bitcoin as a monetary surrogate, claiming it had no real value backing.

• 2017: The first proposals to legalize crypto — the Verkhovna Rada registered bill No. 7183 "On the Circulation of Cryptocurrency in Ukraine," according to which cryptocurrencies were considered program code that is an object of property rights. The mentioned bill also contained proposals regarding the taxation of cryptocurrencies and the definition of the procedure for taxing mining and cryptocurrency exchange operations in accordance with the current legislation of Ukraine.

• 2019: Bill No. 7183 "On the Circulation of Cryptocurrency in Ukraine" was rejected.

• 2021: Adoption of the Law of Ukraine "On Virtual Assets", which effectively lays the foundation for the legalization of the circulation, exchange, and declaration of cryptocurrencies (virtual assets), which have now acquired the status of movable property, and also created prerequisites for the registration of foreign cryptocurrency companies in Ukraine. However, due to conflicts with tax legislation, this law never entered into force.

• 2023: The European Parliament approved new rules for supervision and consumer protection regarding cryptocurrencies – Markets in Crypto-Assets (MiCA). The MiCA regulation (more details about the MiCA Regulation here) is aimed at regulating virtual assets in the EU in order to protect users, investors, and traders. Despite the fact that the MiCA regulation is oriented toward EU countries, it also affects other countries. For example, on the path to European integration, Ukraine decided to fully harmonize the new version of the Law of Ukraine on Virtual Assets with MiCA (more about this can be found here: The European integration process involves adapting domestic legislation to pan-European standards).

• 2025: A new Draft Law on Amendments to the Tax Code of Ukraine and Certain Other Legislative Acts of Ukraine Regarding the Regulation of the Circulation of Virtual Assets in Ukraine has been developed, which provides a definition of virtual assets and their classification. This bill is a supplement to the 2021 Law "On Virtual Assets" and aims to regulate the tax aspects of cryptocurrency operations. Current status of the bill: under consideration.

Frequently Asked Questions About Cryptocurrency and Taxes

What is a "Virtual Asset"?

According to the Law of Ukraine on Virtual Assets, "a virtual asset is an intangible good that is an object of civil rights, has value, and is expressed as a set of data in electronic form. The existence and tradability of a virtual asset are ensured by a system for ensuring the circulation of virtual assets. A virtual asset may certify property rights, in particular, rights of claim to other objects of civil rights."

Types of virtual assets:

1. Secured (certifying property rights)

2. Unsecured (not certifying property rights)

Groups of virtual assets:

1. Asset-referenced (e.g., real estate) tokens;

2. E-money tokens, for example, stablecoins (USDT, USDC, etc.);

3. Others, for example, altcoins (BTC, ETH, etc.).

Who will be affected by the changes to the cryptocurrency law in 2025?

The changes will affect several categories of cryptocurrency market participants:

1. Crypto exchanges that are looking for opportunities to legally conduct business in Ukraine on favorable terms. They will be required to obtain the appropriate licenses and comply with legislative requirements regarding customer identification and reporting.

2. Entrepreneurs who receive payment for their services in cryptocurrency. Currently, they must declare these incomes at the standard personal income tax rate (18%), as income in cryptocurrency is not yet subject to declaration as income of a sole proprietor (FOP). The new law should provide them with clearer taxation rules.

3. Investors and traders who would like to exit the gray zone and avoid intermediaries in the form of crypto exchangers. Tax benefits are provided for them under certain conditions, which will encourage the legalization of income.

Is it necessary to declare cryptocurrency in Ukraine?

Yes, all citizens of Ukraine are required to declare crypto assets. Officials must regularly submit income declarations, so the attention of regulatory authorities toward them is heightened. However, all citizens of Ukraine must pay taxes on profits. Check out the step-by-step guide on how to declare cryptocurrency income in Ukraine, published on the official website of the National Agency on Corruption Prevention.

What proposals for paying taxes on cryptocurrencies by individuals are provided by the bill?

• Separate taxation of income from transactions with virtual assets

• Taxation will apply specifically to the profit received during the year, calculated by the formula: income from sale - expenses for purchase

Not subject to taxation are incomes from transactions exchanging one virtual asset for another, for example, USDT for SOL, income from sales that do not exceed the minimum wage (approximately 8,000 hryvnias at the time of writing), as well as received free cryptocurrency airdrops.

Preferential rate: if a user purchased crypto assets before the law entered into force and sold them in 2026, it is provided that they will be able to pay a personal income tax of 5% instead of 18%, provided that the amount of their investment profit does not exceed 7,000,000 hryvnias for the reporting year.

How to calculate the tax amount?

For a quick calculation of the tax amount at the current rate, use our calculator: (https://www.weex.com/tokens/wuffi/tax-calculator).

What impact will MiCA have on stablecoins?

From June 30, 2024, according to MiCA requirements, the issuance and mining of stablecoins, their listing on exchanges, and the advertising of stablecoins are permitted to be carried out exclusively by electronic money institutions (EMI) and credit institutions registered and licensed in the EU. At the same time, MiCA prohibits stablecoins whose stable value is maintained through algorithmic regulation.

Main consequences for Ukrainian users:

• A smaller selection of stablecoins — only those that fully comply with EU requirements will be available

• Increased reliability of those stablecoins that remain on the market

• Complicated withdrawal of unlicensed stablecoins through European exchanges

You can familiarize yourself with the official overview of MiCA requirements here.

Advantages and Disadvantages of Changes to the Cryptocurrency Law

Advantages

• Widespread adoption of virtual assets

• Protection of customers and their assets, for example, from fake ICOs (Initial Coin Offerings), market manipulation, and other abuses and fraudulent schemes

• Clear rules and requirements for service providers

• Clear taxation system, separate from other types of income, including investments in securities

• Tax benefits and exemptions under certain conditions (more details here) to encourage investors to come out of the shadows and legalize their income

• Additional tax revenue for the state treasury

• Integration of Ukraine into the global economy through harmonization with the MiCA regulation

• Attractiveness for foreign investors and strengthening trust in the Ukrainian crypto market as a whole

• In the long term — the creation of a strong virtual asset market

• Inflow of investments

Disadvantages

• Risk of over-regulation with overly strict requirements

• Additional financial costs for preparing a "White Paper," going through the authorization process, and complying with standards may scare away and push small companies out of the market

• The prohibition on conducting cryptocurrency activities for legal entities and sole proprietors on the simplified tax system will create unfavorable conditions for them

Conclusion

Undoubtedly, in 2025, we are witnessing the creation of historic decisions in the field of legislation on virtual assets and cryptocurrencies, which is a positive sign for everyone involved in the crypto community. For the state, these are additional inflows of funds to the treasury, which can be used for targeted financing of projects; for users, it means transparency and increased security. For investors and traders, it is important to prepare for the new conditions now in order to take full advantage of the benefits that the updated legislation will provide.

You can read more about the Law on our website in an interview with the head of the National Securities and Stock Market Commission of Ukraine, Ruslan Magomedov. Also, subscribe to our newsletter so you don't miss anything important!

 

DISCLAIMER 

WEEX and its affiliates provide digital currency exchange services, including derivatives trading and margin trading, only where such activity is legal and exclusively to appropriate users. All content is provided for reference only and does not constitute financial advice — consult a financial advisor before trading. Cryptocurrency trading is high-risk and may result in the loss of your entire investment. By using WEEX services, you accept all associated risks and terms. Always invest only the amount you can afford to lose. Details are available in our Terms of Use and Risk Warning.