Ukraine’s crypto tax system is set for significant change as the National Securities and Stock Market Commission (NSSMC) introduced a comprehensive framework that would impose an income tax on certain virtual asset transactions. According to Chairman Ruslan Magomedov, the proposal introduces a standard tax rate of 18% on crypto earnings, with an additional 5% military levy—bringing the combined rate to 23%—when crypto is converted to fiat currency or used to purchase goods and services.
The regulatory framework, detailed in a 32-page document released on April 8, addresses the diverse nature of crypto transactions. In an effort to align with practices in other European nations and crypto-friendly territories like Singapore, crypto-to-crypto exchanges are exempt from taxation under the new plan. Similarly, the NSSMC suggested that stablecoins, particularly those backed by foreign currencies, might be taxed at preferential rates of 5% or 9%, reflecting Ukraine’s existing tax exemptions for foreign exchange transactions.
Broadening the tax net, the framework provides guidelines for other crypto-related activities. Mining, which is generally treated as a business activity, could benefit from a tax-free threshold to ease the financial burden on smaller operators. Meanwhile, staking income may be classified as “business captive income” or deferred until the crypto is cashed out, and tokens received through hard forks or airdrops could be taxed either as ordinary income at the time of receipt or at the point of sale.
Magomedov emphasized that “the issue of crypto taxes is not a hypothesis, but a reality that is fast approaching.” He added that the detailed framework was developed not just to generate revenue for the state budget but also to establish a fair and clear regulatory system that minimizes financial abuse and money laundering risks. The provider of this matrix hopes to equip lawmakers with the knowledge to implement a tax system that reflects market realities and international best practices.
Under the new proposal, exemptions would potentially be available for donations, transfers between family members, or transactions held over a certain period, though these exceptions might not extend to non-custodial crypto wallets. The approach mirrors recent trends in other jurisdictions, promising a more balanced taxation model that caters to large-scale enterprises and small investors.
The initiative is part of a broader effort by Ukraine to legalize and regulate its crypto market—a drive that began when President Volodymyr Zelenskyy signed the “On Virtual Assets” law in March 2022. However, delays in amending the nation’s Tax Code have postponed full-scale implementation of the law, resulting in a significant loss of potential tax revenue. Political insiders now forecast that, despite current delays, the comprehensive crypto legalization bill could be introduced by late 2025, with full legalization anticipated by 2026.
As Ukrainian lawmakers deliberate on the merits of the proposed crypto tax framework, market participants and industry experts alike are watching closely, aware that the final decision could change investor behavior and the overall digital asset market in Ukraine.
HODL Team
