Ukraine is poised to make cryptocurrency history as Member of Parliament Yaroslav Zhelezniak prepares to introduce legislation that would establish the nation’s first Strategic Bitcoin Reserve, potentially making Ukraine the first European country to formally incorporate Bitcoin into its national reserves.
NEW: 🇺🇦 Ukrainian MP Yaroslav Zhelezniak plans to introduce a strategic #Bitcoin and crypto reserve bill. pic.twitter.com/4V045H50vs
— Bitcoin Magazine (@BitcoinMagazine) May 15, 2025
Zhelezniak, who serves as the Deputy Chairman of the Committee on Finance, Tax and Customs Policy, has confirmed plans to submit the bill before parliament in the coming weeks. According to local media reports, the lawmaker is currently finalizing the text of the bill before its presentation to the House.
This initiative comes as Ukraine continues to grapple with sustaining its economy during its prolonged conflict with Russia. Experts note that decentralized finance has proven to be an efficient means of transaction during wartime, with cryptocurrency donations having helped Ukraine raise millions in humanitarian and defense aid in 2022 and 2023.
From Crypto Reserve to Bitcoin Focus
The country has consistently maintained a positive stance toward cryptocurrencies and is currently implementing sweeping digital asset reforms. The upcoming Bitcoin reserve bill represents a refinement of Zhelezniak’s earlier vision.
“We will soon submit a draft law from the industry allowing the creation of crypto reserves,” Zhelezniak stated in February. However, his focus has now narrowed specifically to Bitcoin as the cornerstone of Ukraine’s strategic reserve plan.
The timing of this legislation aligns with growing global interest in Bitcoin as a national reserve asset. In March 2025, the United States established its own Strategic Bitcoin Reserve, supported by digital assets forfeited by law enforcement, signaling a race to embrace Bitcoin as a tool for national security and economic independence.
Binance Pledges Support Amid Legislative Challenges
Zhelezniak’s initiative has garnered the attention of global cryptocurrency exchange Binance, which has reportedly pledged its support for the move. Kirill Khomyakov, Head of Binance in CEE, Central Asia, and Africa, confirmed that the company will support the Strategic Bitcoin Reserve effort.
“The creation of such a reserve will require significant changes in legislation, which indicates that this process will not be quick,” Khomyakov cautioned, acknowledging the legislative hurdles ahead.
Binance CEO Richard Teng told the Financial Times last month that the company is collaborating with multiple countries on establishing Bitcoin reserves and crafting crypto regulations. Governments and sovereign wealth funds worldwide have approached Binance for assistance in setting up crypto reserves, spurred by the United States’ increasingly pro-crypto policies.
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Comprehensive Regulatory Framework Underway
Ukraine is simultaneously accelerating efforts to establish a comprehensive legal framework for digital assets. Crypto legalization is anticipated in the first quarter of 2025, following the finalization of a draft bill currently being prepared by a specialized working group in coordination with the National Bank of Ukraine and the International Monetary Fund (IMF), according to Daniil Getmantsev, head of the Verkhovna Rada’s tax committee.
The legislation aims to establish fiscal oversight and integrate anti-money laundering protocols. Profits from crypto transactions will be subject to capital gains tax upon conversion to fiat currency.
According to Ukrainian media outlet Incrypted, a previous version of the bill had advanced through parliament but was recently withdrawn due to concerns from the President’s Office and regulatory resistance, particularly from the National Securities and Stock Market Commission.
Global Trend of Bitcoin Adoption
Ukraine’s move comes amid a broader trend of nations exploring Bitcoin as a strategic asset. Switzerland has been weighing similar measures, while the Brazilian Central Bank has indicated interest in researching digital reserves. The Central African Republic has already made Bitcoin legal tender, following El Salvador’s pioneering move several years ago.
Experts suggest that as additional countries embrace Bitcoin, it could become an increasingly important component of global finance, potentially serving to hold national wealth, underwrite international trade, or even replace portions of conventional foreign reserves.
Peace Talks May Boost Value
Ahead of the submission of the Strategic Bitcoin Reserve bill, Ukraine is pursuing ceasefire negotiations with Russia. Financial analysts note that the signing of a peace deal between the two nations could stoke bullish sentiment in cryptocurrency markets.
This new dynamic could prove advantageous for Ukraine’s proposed Bitcoin Reserve. A peaceful resolution to the conflict could unleash economic recovery and optimism, potentially driving up investor confidence and cryptocurrency prices—making Ukraine’s proposed Bitcoin Reserve even more strategically valuable.
With Bitcoin currently trading above $100,000, the establishment of a national reserve could position Ukraine at the forefront of financial innovation in Europe while potentially providing a hedge against economic instability as the nation works toward recovery and rebuilding.
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