Ukraine's parliament, the Verkhovna Rada, has passed the first reading of a bill aimed at legalizing and taxing cryptocurrency, with 246 votes in favor. If enacted, the legislation will impose an 18% income tax and a 5% military tax on profits from digital assets. Additionally, it proposes a temporary 5% tax rate on fiat conversions during its first year, aligning Ukraine’s taxation framework with those of crypto-friendly nations. Lawmaker Yaroslav Zhelezniak indicated there may be revisions to the bill before its second reading, particularly concerning which regulatory body will oversee its implementation. This legislative move is part of Ukraine's efforts to enhance its crypto economy, which currently ranks high in global crypto adoption. Recent developments in the sector include initiatives to establish a crypto asset reserve and ongoing discussions about regulating crypto taxation in various countries. Volodymyr Nosov, CEO of the European crypto exchange WhiteBIT, emphasized the bill's potential to attract crypto investments and support economic revitalization amidst challenging financial conditions.

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