Virtual assets and cryptocurrencies: what’s new in tax regulation in 2025?

Author: Viktoriia Staryk, lawyer at F&P

Ukraine took an important step in formalizing the crypto market back in March 2022 by adopting the Law on Virtual Assets. However, due to the lack of proper amendments to the Tax Code, it has not yet entered into force. There is still a legal vacuum: banks block transactions, businesses return to international exchanges, and platforms do not have clear rules of operation.

New draft law No. 10225-d (July 2025)

On April 24, 2025, MP Danylo Hetmantsev initiated draft law No. 10225-d, which:

• updates the concept of “virtual assets”, classifying them by analogy with the EU/MiCA: asset-backed tokens, e-money tokens, others;

• introduces platform licensing with capital, transparency, and KYC requirements;

• prescribes reporting procedures for transactions with the VA.

How individuals are taxed

According to the updated approach:

• The standard rate is 18 % personal income tax + 5 % military duty (≈ 23 % in total) on income from converting crypto into fiat or for the purchase of goods/services;

• Crypto-to-crypto transactions are tax exempt – just like in Europe and Singapore;

• Preferential rates of 5% or 9% are offered for stablecoin and asset-backed tokens;

• Income from mining, staking, forks, airdrops is determined separately: either at the stage of receipt or only at the time of cashout;

• You can recover damages (carry-forward);

• Transactions within the same minimum subsistence level are not taxed (the relevant exemption threshold).

Taxation for companies

The draft law outlines:

• Obligations of legal entities to separately account for VA transactions;

• Corporate income is taxed at 18% on the difference between revenue and expenses;

• The list of expenses that can be adjusted is defined and formed in accordance with IFRS/national standards;

• Legal entities operating VA (exchanges, platforms, providers) must register (within 60 days), maintain KYC, and submit an annual report on transactions by January 31;

• Penalties for non-compliance range from 20 to 100 minimum wages (~160,000-800,000 ₴).

What’s next?

• Amendments to the Tax Code should be introduced in 2025-2026;

• Transition period: transactions of the previous period can be declared in 2026 on preferential terms – 10% general rate (5 + 5);

• At the same time, Ukraine is implementing the Crypto-Asset Reporting Framework (CARF), an international framework for the automatic exchange of data between CASPs.

Conclusions for businesses

1. Reporting on crypto transactions will become mandatory, and this process requires a thorough accounting logic.

2. Taxation: 18 % + 5 % military tax on sale/conversion income. For some tokens, 5% or 9%.

3. Accounting of expenses for the purchase/exchange of tokens is mandatory to reduce the tax burden.

4. Licensing and reporting: Future crypto platform operators must register and submit annual reports.

5. Transition period until 2029 – higher fines are introduced gradually.

Recommendations:

• VA operators, crypto exchanges, IT companies: prepare an accounting system, document transactions, and consult with lawyers on compliance with the draft law.

• Investors should consider the new regime when planning to buy and sell tokens.

• Legal advisors are encouraged to prepare courses/guides for clients on the new reporting and accounting.

These changes open up opportunities – but only for those who are ready for transparent rules of the game and close accounting.