Michaela
Ukraine has taken a major step toward integrating digital assets into its economy, with the Verkhovna Rada approving the first reading of a bill that would legalize and tax cryptocurrency.
Key points:
- Ukraine’s parliament approved the first reading of a bill to legalize and tax cryptocurrencies, introducing an 18% income tax, 5% military levy, and a 5% fiat conversion tax in year one.
- The legislation aims to provide regulatory clarity, attract investment, and create a formal legal framework for digital assets, though the designated regulator has not yet been confirmed.
- Ukraine’s move could encourage broader crypto adoption, stimulate innovation, and increase market participation among both retail and institutional investors.
Economist and lawmaker Yaroslav Zhelezniak announced on his Telegram channel that 246 deputies backed the measure. The draft legislation proposes an 18% income tax and a 5% military levy on crypto profits, while offering a reduced 5% tax rate on fiat conversions during its first year.
“I don’t see much point in going into detail now, there will be many changes before the second reading,” Zhelezniak wrote in a translated statement. In his remarks, he noted that the designated regulator has not yet been determined, though he suggested it could fall under the authority of either the National Bank of Ukraine (NBU) or the National Securities and Stock Market Commission (NSSMC).
The Ukranian parliament has actively been advancing crypto legislation this year as digital assets gain wider acceptance among both retail and institutional investors. Lawmakers are seeking to create a formal legal framework that recognizes cryptocurrencies as property, outlines taxation rules, and establishes clear regulatory oversight.
These efforts aim to attract investment, encourage innovation, and provide legal certainty for businesses and individuals operating in the crypto space, positioning Ukraine as a more structured and transparent market for digital assets.
Ukraine Crypto Legalization Could Boost SHIB Demand
Ukraine’s push to legalize and tax cryptocurrencies could have meaningful implications for SHIB holders, as well as the broader crypto ecosystem in the country. By providing a clearer regulatory framework, the legislation reduces uncertainty for investors, making it easier for both individuals and institutions to participate in digital asset markets.
For SHIB, a widely recognized and established token, this could translate into greater confidence among Ukrainian investors and an uptick in trading activity. Regulatory clarity may also encourage new platforms, exchanges, and payment providers to integrate SHIB, expanding its usability and visibility in the region.
Furthermore, formal recognition of digital assets could attract international interest and liquidity, benefiting tokens with strong communities like SHIB. While adoption and demand depend on market conditions and investor sentiment, Ukraine’s efforts signal a move toward mainstream acceptance, potentially positioning SHIB as a more accessible and trusted option for local crypto users.
Read More
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Michaela has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.
