Ukraine Proposes Up to 23% Tax on Cryptocurrency Transactions

Ukraine's National Securities and Stock Market Commission (NSSMC) proposed a new taxation scheme for cryptocurrencies, categorizing them as personal income. Key points include:

Tax rate set at 18% plus a 5% wartime levy for cashing out non-stablecoin cryptocurrencies.
Crypto-to-crypto transactions would remain untaxed.
Foreign asset-backed stablecoins may receive a preferential tax rate of 5% or 9%.
Mining, staking, hard-forks, and airdrops have varied proposed taxation methods.
A previous draft law in 2023 aimed to amend the tax code for cryptocurrency regulation.
Potential annual tax revenue from crypto transactions could exceed $200 million.
Legalization of the cryptocurrency sector occurred in 2022, with ongoing regulatory developments aligned with EU standards.

The NSSMC emphasizes that fair taxation rules are essential to attract investment and integrate Ukraine into the global financial market.