As an experienced crypto expert and trader with many years of experience, I constantly follow the news regarding the legalization of cryptocurrency in Ukraine . This issue worries most Ukrainian cryptons, because it determines how we will work with BTC, USDT and other assets in spot, futures, deposits and just for everyday payments. Today I want to talk in detail about the latest draft law that regulates cryptocurrency, taxes and rules of use, as well as give my practical advice on how to act now.
Breaking news: the bill has been blocked
Recently, the draft law on the legalization and taxation of cryptocurrency, which almost reached the Cabinet of Ministers, was blocked by the Office of the President . It has been withdrawn from consideration for an indefinite period. However, I still want to explain what this document contained, because this is the only project that has come as close as possible to real implementation. It is likely that future laws will be adopted on its basis or it will be returned for consideration with minor changes.
Cryptocurrency is no longer in the shadows
According to the project, crypto ceases to be in the shadows, but is not recognized as a means of payment . That is, you cannot buy coffee directly for BTC or USDT yet. But there is a legal solution - crypto cards. They allow you to pay in USDT or USDC through regular terminals, and the entire conversion process occurs automatically.
Cryptocurrency is defined as movable property in digital form , and the bill divides it into three categories:
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Tied to real assets — for example, tokens backed by real estate or other valuables.
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Fiat -pegged stablecoins such as USDT or USDC.
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Other cryptos are BTC, ETH, SOL, and other decentralized coins.
This classification is important for calculating taxes and the legality of transactions .
Taxes: how and when to pay
One of the most worrying issues is taxes. Important: taxes only appear when you withdraw crypto to fiat - hryvnia or dollar. If you keep cryptocurrency in your wallet or exchange it for another coin, you don't need to pay anything.
Basic rates:
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18% income tax
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5% military levy (possibly later reduced to 1.5%)
Tax is levied only on the profit , not on the entire amount. For example, if you bought BTC for UAH 20,000 and sold it for UAH 40,000, tax is paid on UAH 20,000 of profit. If you sold it for less than you bought it for, tax is not paid.
Losses can be declared and used later to reduce other taxes. Reporting is required once a year: declaration by May 1, tax payment by August 1.
There are pleasant moments:
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If the annual income is less than the minimum wage, taxes are not paid.
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Holding crypto on a wallet without withdrawing it to fiat is tax-free.
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Exchanging USDT for BTC or other crypto is also tax-free.
Legal work with crypto for business
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An individual entrepreneur using the simplified system will not be able to officially work with crypto.
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Individual entrepreneurs on the general system and legal entities will pay the standard 18% of profit.
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VAT will not apply until the crypto becomes a good or service.
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P2P trading will be legal — individuals will be able to trade with mandatory tax payment.
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Creating your own tokens will become legal if you submit a project and documents within the framework of the law.
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Launching your own exchange (exchange) will be possible, but will require a license. Who will issue it has not yet been determined.
Tax amnesty
The first year after the law is launched, there will be a tax amnesty . You will be able to officially declare the crypto that is already on your wallet and pay only 5% tax without penalties . The rules will become stricter later, so I recommend taking advantage of this opportunity.
Practical life hack: Bybit crypto card
Every Ukrainian can already apply for a cryptocurrency card from the Bybit exchange . It allows:
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Pay with crypto in stores
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Withdraw cash from ATMs
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Use funds directly from your exchange account without transferring to a bank
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Pay out staking funds automatically
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Get up to 10% cashback
Given the active monitoring of individual accounts by banks, a crypto card can be a real safety net at any time.
Pros and cons of crypto legalization
Pros:
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Official definition of crypto as an asset
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Legal P2P trading and token creation
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Taxes only on withdrawals to fiat
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Possibility of tax amnesty
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Market order and growth of investor confidence
Cons:
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Individual entrepreneurs on the simplified system will not be able to work with crypto
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Taxes 18% + 5% military duty when withdrawing to fiat
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You cannot pay for purchases with crypto directly
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Risks from regulatory changes and delays in the adoption of the law
Typical mistakes of beginners
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Ignoring legal rules and attempting to evade taxes.
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Converting crypto to fiat without taking into account tax liabilities.
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Lack of profit and loss accounting for tax returns.
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Using unregistered or unsafe exchanges for trading.
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Postponing the issuance of a crypto card and legal instruments until later.
Safety tips
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Use account holders with two-factor authentication
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Use official exchanges for trading and card issuance
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Do not share your account or card details with third parties
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Check your balance and transactions regularly
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Keep backup copies of your crypto wallet keys
FAQ
Question: Is it legal to buy BTC or USDT without being a sole proprietor?
Answer: Yes, an individual can trade P2P, but with mandatory payment of taxes when withdrawing to fiat.
Question: Are there taxes if I just hold crypto in a wallet?
Answer: No, taxes only appear when withdrawing to fiat.
Question: How does the tax amnesty work?
Answer: During the first year after the law is launched, you can declare your existing crypto and pay only 5% without penalties.
Question: Can I use a crypto card with staking?
Answer: Yes, for example, the Bybit card allows you to automatically debit funds from staking without the need for manual withdrawal.
Conclusion
In my opinion, the legalization of crypto in Ukraine is a huge step forward for traders, investors, and cryptocurrency users . It will allow for official trading, token launches, P2P, and crypto cards, and taxes will only be charged when withdrawing to fiat.
My practical life hack: if you want to use crypto legally and without any problems right away, get a crypto card from Bybit . It allows you to pay for purchases, withdraw cash, receive cashback, and pay with staking funds automatically. It really works and greatly simplifies everyday crypto use.
If you haven't registered on Bybit yet, I recommend doing so now via the affiliate link to get bonuses. And, of course, follow the news about crypto legalization to use all the advantages of the market without risks.