Ukrainian Financial Regulator Pushes for 23% Crypto Tax on Profits

Jimmy Aki
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On April 8, the Ukrainian regulator, the National Securities and Stock Market Commission (NSSMC), unveiled a new crypto tax framework to tax profits from digital assets. The plan categorizes profits from certain crypto transactions as personal income with a 23% tax rate.

New Proposal Introduces 5% Military Levy

According to a detailed report, Ukraine’s crypto tax framework outlines both a standard and preferential tax rate.

Crypto converted to fiat currency or used for purchases faces an 18% Personal Income Tax (PIT) and a 5% Military Levy, which together total 23%.

Meanwhile, a preferential tax rate of 5% and 9% applies under Article 167 of the Tax Code of Ukraine.

This provision exempts income from transactions involving currency valuables from taxation.

Specifically, crypto transactions involving authorized Electronic Money Tokens (EMTs) and Asset-Referenced Tokens (ARTs) that maintain stable values pegged to currency qualify for either a preferential rate or a potential exemption.

The Ukrainian financial regulator recommends a 5% or 9% tax in these cases.

Furthermore, stablecoins backed by foreign currencies could escape taxation altogether, as Ukraine’s tax laws already exempt income from transactions in foreign exchange values

The framework also excludes crypto-to-crypto transactions from taxation.

This decision puts Ukraine in line with other European countries, such as Austria and France, and crypto-friendly nations, like Singapore.

In a follow-up press release, the chairman of the NSSMC, Ruslan Magomedov, explained that the crypto tax issue has become a pressing reality.

He stressed that the framework would guide authorities in making informed decisions while weighing the advantages and disadvantages of each model, which will significantly impact both the market and tax liability.

Ukraine Crypto Tax Extends to Staking and Mining

The Ukrainian financial regulator also provided details on how crypto tax will apply to staking and mining activities.

Miners typically pay taxes as part of entrepreneurial activity. However, the framework may establish a non-taxable threshold for virtual asset operations, including mining.

In contrast, cryptos earned from staking can either count as business income or face taxation only when disposed of.

This distinction outlines how different types of crypto transactions will be taxed based on the method of acquisition and use.

Ukraine’s new crypto tax framework joins a broader global trend where countries continuously update their regulations to adapt to the rapidly evolving digital asset space.

For example, Australia’s government, under the ruling center-left Labor Party, has proposed a crypto regulation framework.

The plan focuses on four key areas: Digital Asset Platforms (DAPs), payment stablecoins, Australia’s Enhanced Regulatory Sandbox, and initiatives to integrate digital assets safely into financial markets.

Similarly, the UK Treasury recently confirmed that crypto staking does not fall under the definition of a collective investment scheme (CIS) as part of a broader plan to regulate cryptocurrencies by early 2025.

The global push for clear regulations, like those from Ukraine, Australia, and the UK, signals a shift toward greater stability and innovation within the crypto space.

About Jimmy Aki PRO INVESTOR

Based in the UK, Jimmy is an economic researcher with outstanding hands-on and heads-on experience in Macroeconomic finance analysis, forecasting and planning. He has honed his skills having worked cross-continental as a finance analyst, which gives him inter-cultural experience. He currently has a strong passion for regulation and macroeconomic trends as it allows him peek under the global bonnet to see how the world works.