Ukraine plans to introduce 23% crypto tax

Ukraine is preparing to introduce a 23% tax on certain cryptocurrency income, while exempting crypto-to-crypto transactions and stablecoins. The new framework, proposed by the National Securities and Stock Market Commission (NSSMC), aims to help lawmakers make informed decisions as regulation in the sector accelerates.

Key Points of the Proposed Framework

According to the NSSMC's proposal released on April 8, crypto transactions would be taxed at 18% plus an additional 5% military levy. However, exchanging one cryptocurrency for another will not be taxed — aligning Ukraine with countries like Austria, France, and crypto-friendly hubs like Singapore.
 

Stablecoins backed by fiat currencies may also be excluded from full taxation, or taxed at a reduced rate of 5% or 9%. The NSSMC explained that income from foreign exchange operations is already exempt from tax under Ukraine’s current tax code, which may apply to stablecoins as well.
 

Ruslan Magomedov, Chair of the NSSMC, noted on April 8 that the issue of crypto taxation is becoming a pressing reality: «The issue of crypto taxes is not a hypothesis, but a reality that is fast approaching.» He emphasized that the framework was designed to allow lawmakers to «make an informed resolution» by weighing the pros and cons of each measure.

Mining, Staking, and Other Activities

The proposal also outlines approaches for taxing related activities such as mining, staking, airdrops, and hard forks. Mining is considered a business activity, but may benefit from tax exemptions up to a certain limit.
 

Staking could be classified as business income or taxed only when converted to fiat. Airdrops and hard forks may be taxed either at the time of receipt or upon cashing out.
 

The NSSMC also suggested a tax-free threshold to ease the burden on small investors, a measure commonly used in other countries. Donations, transfers between family members, and long-term holding may also qualify for exemptions — though these might not apply to non-custodial wallets.
 

In December 2024, Daniil Getmantsev, head of Ukraine’s tax committee, said a draft bill to regulate and legalize cryptocurrencies was under review and expected to be finalized early this year. President Volodymyr Zelenskyy signed the initial legal framework for the crypto market back in March 2022.