- Ukraine proposes a 23% tax on crypto-to-fiat but excludes stablecoin activity.
- Mining and staking may face tax only when assets convert to fiat currency.
- Stablecoins pegged to currencies may qualify for tax breaks under new rules.
Ukraine’s securities regulator has proposed a new taxation structure on digital assets that would impose a 23% personal income tax on specific crypto transactions. The framework excludes crypto swaps and stablecoin operations while targeting conversions to fiat or payments for goods and services.
Tax Plan Details Crypto Income, Stablecoin Rules, and Personal Use
In a post by MrRebel.eth, Ukraine’s National Securities and Stock Market Commission issued the framework on April 8. Crypto-to-fiat transactions would incur an 18% income tax plus a 5% military levy. The commission confirmed that crypto swaps and stablecoin activity will remain exempt under the proposed model.
Besides these exemptions, the commission outlined three token types: asset-referenced, unsecured, and algorithmic stablecoins. Asset-referenced tokens backed by currency or metals fall under rules in clause 165.1.51, clause 65.1, and article 165 of Ukraine’s Tax Code. These provisions currently exempt foreign exchange-linked transactions from taxation.
Stablecoins pegged to foreign currencies would not be taxed under this proposal. The commission classified these tokens as equivalent to foreign exchange values. They also proposed a lower tax rate, either 5% or 9%, if full exemptions are not adopted.
Mining, Staking, and Airdrops Face Case-by-Case Assessment
Ukraine’s regulator addressed staking, mining, and airdrops, calling for flexible rules based on transaction intent. Staking may be taxed only when crypto is exchanged for fiat, while airdrops and hard forks could be taxed upon sale or receipt. Mining is treated as a business activity but may qualify for income thresholds before taxation applies.
The regulator proposed exemptions for donations, family transfers, and long-term holders, which depend on wallet type and transaction history. Tax-free thresholds may ease burdens on small investors, while centralized wallets may face different standards than non-custodial ones.
The commission recommended forming a digital asset registry to manage valuation transparency. VASPs must follow AML rules and collect transaction data in the proposed enforcement model. These measures aim to align Ukraine’s crypto laws with global financial compliance norms.
