Ukraine Proposes 18% Tax on Crypto Gains

Ukraine may soon tax crypto profits at 18%, plus a 5% military levy. The proposal also covers mining, staking, and airdrops.

Aurelien Sage April 9, 2025 - 3:15 PM

20 1 minute read

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Regulation

Ukraine plans an 18% income tax and 5% military levy on crypto gains
Preferential rates of 5%–9% may apply to specific categories
Crypto-to-crypto trades will be exempt from taxation

In a significant development for crypto regulation, Ukraine’s National Securities and Stock Market Commission (NSSMC) has submitted a proposal to tax cryptocurrency profits. If passed by the Ukrainian Parliament, the new rules could reshape the landscape for digital asset holders and businesses operating in the country.

The proposed legislation introduces an 18% income tax on profits derived from crypto activities, alongside a 5% military levy. The military levy, introduced amid ongoing conflict, is part of Ukraine’s broader effort to increase state revenue for national defense.

The tax would apply to various crypto-related income sources, including mining, staking, and airdrops. These activities would no longer remain in a regulatory gray zone but would be subject to standard financial reporting and taxation.

Preferential Rates and Exemptions

The proposal also outlines preferential tax rates ranging from 5% to 9% for certain individuals or entities, possibly including early-stage investors or smaller crypto operations. This move may aim to support innovation while still ensuring the state benefits from the growing crypto economy.

One notable relief in the proposed bill is that crypto-to-crypto transactions will remain tax-exempt. This means individuals who trade one digital asset for another won’t be burdened with tax obligations for each conversion, simplifying operations for traders and investors.

Ukraine’s NSSMC has proposed taxing crypto gains with an 18% income tax and 5% military levy, with 5%–9% preferential rates for some categories. Mining, staking, and airdrops would be taxed; crypto-to-crypto trades would be exempt. The proposal is now in parliament for review.…
— Wu Blockchain (@WuBlockchain) April 9, 2025

What’s Next?

The proposal is currently under review by Ukraine’s Parliament, and its final shape may evolve through legislative debate. If adopted, it would mark a major step toward integrating crypto into Ukraine’s formal economy.

The country has shown an openness to digital innovation and cryptocurrencies, especially since the start of the war, during which crypto donations played a significant role in fundraising for defense and humanitarian efforts. However, this new tax framework reflects a balancing act between encouraging innovation and ensuring financial accountability.

As the crypto industry in Ukraine awaits the Parliament’s decision, stakeholders are advised to prepare for potential compliance adjustments and seek professional advice to navigate the upcoming changes.

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