Ukraine’s top financial regulator is proposing the idea of taxing cryptocurrencies as personal income and potentially conquering Stablecoins backed by certain foreign assets, according to a newly proposed tax matrix released on Tuesday.
In a translation letter introducing potential new approaches, Ukrainian chief Ruslan Magomedov National Securities and Stock Market CommitteeEffective tax policies are a necessary step to prevent financial abuse and promote “legal and responsible use of digital assets”, said.
Magomedov added: “The establishment of fair and easy-to-understand tax rules is also a prerequisite for attracting investment and integrating Ukrainian virtual asset markets into global financial markets.”
According to the NSSMC’s recommended tax plans, certain crypto transactions – essentially those non-fixed coins are cashed in for fiat currencies or exchanged for goods or services, with no financial loss in the transaction – will be taxed 5% WARTIME LEVY obtained from 18% of standard individuals in Ukraine, in addition to taxation Effective in December last year.
Under the proposed tax matrix, cryptocurrency transactions will not be taxed, which is in line with how several other European countries, including Austria and France, and crypto-friendly jurisdictions such as Singapore handle cryptocurrency taxes.
Since Ukraine’s tax laws exempt any income generated from transactions with foreign exchange value, the NSSMC recommends that “it makes sense to consider priority interest rates or tax exemptions” for foreign asset-backed stablers and certain asset reviews tokens (ARTS) (ARTS) to foreign asset-backed stable shares (Arts). The recommended preferential tax rate under the matrix can be 5% or 9%.
The matrix also offers a variety of tax options for other types of crypto transactions, including mining, which the NSSMC recommends to treat as “business activity”; regulators say staking can “see it as business captive income” or tax only in the cash stage; regulators say these forklifts and airdrops can also be taxed as ordinary income, or taxed only in the cash stage.
Ukraine has previously proposed a draft law that also revised the country’s tax laws to cover cryptocurrencies in 2023. 2024 Analysis Global Ledger, a Swiss blockchain analytics firm, found that Ukraine can charge more than $200 million in annual taxes from crypto transactions.
Ukrainian President Volodymyr Zelensky formally legalized the country’s cryptocurrency sector in 2022, identified regulators in the industry and gave them the act of enacting specific regulations. The National Bank of Ukraine is currently developing a draft law in accordance with the EU (EU) Market (MICA) regulations.
Ukraine has been a candidate for EU membership since 2022.
Coindesk contacted NSSMC for comment.
