Headline: Украина на пути к легализации криптовалют: первый шаг сделан Translation: Ukraine on the Path to Cryptocurrency Legalization: The First Step Taken

On September 3, the Ukrainian Parliament approved the draft law № 10225-д «On Virtual Asset Markets» in its first reading, which will define the status and taxation of cryptocurrencies within the country. A total of 246 lawmakers voted in favor of the measure.

The tax subject will be the profit generated from virtual asset transactions over the course of a year—the difference between the income from sales and the expenditure on their purchase. This profit will be included in the total taxable income at a rate of 18%. In the first year following the implementation of the law, a favorable rate of 5% for fiat exit will apply.

The following are exempt from taxation:

The National Bank, along with a specific yet-to-be-determined regulator, will oversee the regulation and supervision of activities in virtual asset markets.

The latter will be granted extensive authority:

According to MP Yaroslav Zhelezniak, numerous amendments will be introduced to the document by the time it reaches the second reading.

Experts believe that legalizing the industry could bring Ukraine $10 billion.

It is worth noting that in April, the tax committee reviewed the «On Virtual Assets» draft law and recommended it for the first reading in Parliament.

Later, the office of President Volodymyr Zelensky blocked the examination of the draft law regarding the regulation of cryptocurrencies in the country.

At the same time, the NBU has declined to establish a bitcoin reserve in the nation for now.