- Ukraine revealed a new regulatory framework for digital currencies.
- The new framework imposes a 23% tax on cryptocurrencies.
The National Securities and Stock Market Commission of Ukraine (NSSMC) has announced a proposed framework for the taxation of cryptocurrencies. This new framework will impose a 23% tax on certain crypto transactions while strategically exempting crypto-to-crypto transactions and stablecoins.
Released on April 8, 2025, the proposal comes as Ukrainian lawmakers continue developing comprehensive virtual asset regulations. On this Ruslan Mangomedov stated,
“In the digital era, the issue of cryptocurrency taxes is not a hypothesis, but a reality that is fast approaching. The task of the matrix developed by the NSSMC is to help the responsible authorities make an informed resolution. And in this process, it is important to take into account the advantages and disadvantages of each model.”
New Tax Frameworks Aim To Clear Regulation And Market Growth
According to Ukrainian officials, an 18% tax will be imposed on crypto transactions with a 5% military levy. Moreover, the tax will only be applied when an investor converts their assets into fiat currency or exchanges them for goods and services.
On the other hand, stablecoins and crypto-to-crypto transactions are entirely exempt from taxation. The new regulatory framework gave special treatment to stablecoins as they were backed by foreign currencies. The existing tax code in Ukraine recommends either complete exemption or reduced tax rates of 5-9% on stablecoins.
For crypto mining, staking, and airdrops, the proposal offers flexible options. Mining could be classified as business activity but potentially benefit from tax-free thresholds for small operators. Staking might be taxed only upon conversion to fiat.
Taxation on hard forks and airdrops may occur as ordinary income or when the tokens are cashed out. Furthermore, to protect retail investors, the new regulatory framework proposes exemptions for donations, family transfers, and long-term holders.
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