Ukrainian lawmakers have taken a major step toward integrating cryptocurrency into the national economy after the Verkhovna Rada approved a key crypto regulation bill in its first reading. The proposal, backed by 246 of 321 deputies, highlights strong political will to create a clear legal framework for digital assets despite the ongoing war with Russia.

The bill introduces a 23% tax on crypto profits, combining an 18% base tax with an additional 5%. To encourage adoption, a temporary 5% tax on conversions to fiat currency will apply in the first year. Lawmakers say the measure aims to balance innovation with fiscal responsibility, while moving Ukraine closer to crypto-friendly tax models.

Ukraine already ranks 8th worldwide for crypto adoption, according to the Chainalysis 2025 Index. With plans to eventually add virtual assets to the central bank’s reserves, the country could become Europe’s first to hold a state-managed Bitcoin reserve. A second reading of the bill is expected in the coming months.