Ukraine Eyes Up to 10% Crypto Tax as Legalization Gains Momentum!
Ukraine is moving closer to full crypto legalization, with lawmakers expected to vote on a long-awaited bill in the coming months. However, the key debate centers around taxation, which could significantly impact the country’s growing digital asset sector.
Officials are considering a crypto tax rate between 5% and 10%, aiming to balance industry growth with generating revenue for the state budget and military funding. However, there’s also discussion about applying the standard tax framework, which would impose an 18% income tax plus a 5% military levy, bringing the total tax burden to 23%.
Will Crypto Taxation Be Too Harsh?
Danil Hetmantsev, head of Ukraine’s finance, tax, and customs committee, expects the bill’s first reading by the end of March, with full enactment possibly by mid-2025. But some lawmakers believe full legalization and taxation might not take effect until 2026.
Taras Kozak, an investment executive and Kyiv City Council member, warns that if Ukraine makes taxation too complex, businesses and investors may flee to offshore platforms.
Ukraine’s Crypto-Friendly Stance
Since Russia’s 2022 invasion, Ukraine has embraced crypto for financial transactions and donations. However, legal uncertainties have hindered mainstream adoption. The new bill aims to provide clear guidelines for crypto usage and taxation while aligning with EU anti-money laundering (AML) standards.
Despite strong political backing, Ukraine has faced delays in crypto regulation, with previous laws requiring amendments to match global financial compliance rules.
Will Ukraine Attract Crypto Investors or Push Them Away?
The outcome of this legislation will determine whether Ukraine emerges as a crypto-friendly hub or drives investors elsewhere. With global competition heating up, the country must ensure regulatory clarity without stifling growth.
