Ukraine Parliament Passes First Reading of Crypto Tax Bill During Wartime

Belarus is working on establishing a national framework for cryptocurrency, balancing state oversight with the desire to remain competitive in the global crypto market. President Aleksandr Lukashenko has instructed lawmakers to set clear regulations and is considering using the country's surplus electricity for profitable crypto mining, though peer-to-peer crypto transactions remain banned to ensure controlled token circulation. Meanwhile, Ukraine has taken significant legislative steps toward legalizing and regulating cryptocurrency by passing the first reading of a bill that defines digital assets as taxable property and imposes a combined 23% tax rate, including an 18% income tax and a 5% military levy, with a reduced 5% tax on crypto-to-fiat conversions during the first year. This move aims to curb illicit crypto activities, generate vital revenue, and align Ukraine's crypto regulations with European standards as part of its EU accession efforts. Despite ongoing conflict with Russia, Ukraine is positioning itself as a forward-looking hub for crypto adoption and capital inflows, with the new rules expected to take effect in early 2026. Both countries' approaches reflect a cautious yet strategic embrace of cryptocurrency amid broader geopolitical and economic challenges.