Ukraine is accelerating the process of legalizing cryptocurrencies by finalizing the legal framework to regulate this sector. Lawmakers are expected to vote on the proposed bill in the coming months. However, a significant unresolved issue is the tax mechanism applicable to digital assets.
According to current proposals, Ukraine may implement a tax rate on cryptocurrency transactions and income ranging from 5% to 10%. Alternatively, the government is considering applying a standard tax framework similar to that of regular income. Under this approach, cryptocurrency holders could face a personal income tax rate of 18%, plus a military tax of 5%, bringing the total tax on cryptocurrency profits to 23%.
Discussions on tax policy are ongoing, and no final decision has been made regarding the applicable tax rate. The bill to legalize cryptocurrencies in Ukraine is expected to be finalized by mid-2025, marking a significant step toward establishing a clear legal framework for the blockchain industry and digital assets in the country.