Ukraine Weighs Legalising OnlyFans in a Bid to Raise $25M To Fund War Effort

Ukraine is considering legislation to legalise adult content production, with supporters arguing the reform could generate millions of dollars in tax revenue to help fund the country's war effort against Russia.

The bill, backed by Ukrainian lawmaker Yaroslav Zhelezniak, passed its first reading in parliament in July and awaits further consideration. Supporters estimate the proposed changes could generate up to $25 million (£18.75 million) annually in tax revenue.

The campaign gained momentum after a public petition on President Volodymyr Zelensky's official website attracted more than 25,000 signatures, calling for the government to reconsider its treatment of adult content creators.

Under existing Ukrainian legislation, producing and distributing pornography can carry criminal penalties. This creates legal uncertainty for creators earning money through subscription platforms such as OnlyFans, particularly when declaring their income exposes them to potential scrutiny over the content they produce.

The proposed reform seeks to distinguish consensual adult content production from criminal activity, allowing creators to operate legally while enabling the government to collect taxes from an established online industry.

OnlyFans Earnings Fuel Calls for Reform

The scale of Ukraine's online adult entertainment industry has strengthened arguments for changing the law.

Nearly 7,900 Ukrainian creators generated more than $131 million (£98.25 million) through OnlyFans in 2023, according to figures cited in reports about the proposed legislation.

Supporters argue that the current system creates a contradiction: creators can face criminal investigations over producing pornographic material while tax authorities seek to collect taxes on their earnings.

The proposed changes would remove criminal penalties for producing and distributing consensual adult pornography while retaining restrictions on offences involving children, non-consensual material and sexual exploitation.

The reform campaign has also highlighted complaints about investigations, alleged demands for bribes and the legal uncertainty facing creators. Supporters say decriminalisation could reduce opportunities for corruption and encourage people to declare their earnings rather than conceal them.

However, the projected $25 million (£18.75 million) in annual tax revenue remains an estimate, rather than money already secured for the state.

The legislation must undergo further parliamentary consideration before it can become law. Its supporters will need sufficient backing in subsequent votes to turn the proposal into a formal change in Ukraine's criminal legislation.

Ukraine Seeks Additional Revenue Amid War

The debate comes as Ukraine continues to face substantial military spending requirements following Russia's full-scale invasion in February 2022.

Russian missile and drone attacks have repeatedly targeted Ukrainian cities and infrastructure, while Kyiv continues to seek international military and financial assistance.

The Ukrainian government faces significant costs for weapons, ammunition, drones, air defence systems and support for its armed forces. Additional domestic revenue could help ease some of that financial pressure, although the proposed adult entertainment tax income would cover only a small proportion of overall defence needs.

Supporters present the bill as both an economic measure and an attempt to address legal inconsistencies affecting thousands of people working online.

Nevertheless, the proposal remains under parliamentary consideration, and its potential financial contribution depends on whether lawmakers approve the changes and how the industry is subsequently regulated.

For Ukraine, the debate illustrates the search for additional revenue sources during wartime while highlighting the challenges of balancing criminal law, individual rights and taxation.