Ukraine’s New Crypto Tax Bill: Will Traders Pay Up to 23% on Digital Assets?

Ukraine is taking a big step toward regulating cryptocurrency, with plans to legalize and tax digital assets. The goal? To strengthen the country’s budget and support military efforts. Lawmakers are finalizing a crypto tax bill, expected to be ready by mid-2025. But here’s where things get interesting – tax rates could range from 5% to 10%, while undocumented crypto holdings might face a hefty 23% tax.

With crypto playing a growing role in Ukraine’s economy, this new tax policy could have major implications for investors, businesses, and the broader digital asset market.

Will it encourage adoption, or will higher taxes drive crypto users underground? Here’s what we know so far.

New Crypto Tax Bill in the Works

As part of its crypto legalization efforts, Ukraine is planning a 5% to 10% tax on crypto transactions. The government wants to use these funds to strengthen the state budget and military, especially as the country continues its conflict with Russia.

Danylo Hetmantsev, head of the Verkhovna Rada’s Committee on Finance, Tax, and Customs Policy, confirmed that the core text of the bill is ready. However, lawmakers are still debating how to track and regulate crypto transactions.

When Will the Tax Be Implemented?

The bill is expected to pass its first reading by March 2025, but full implementation may take longer. Taras Kozak, deputy of the Kyiv City Council, suggested that the process could stretch into 2026. He noted that many Ukrainians support a 5% crypto tax, considering it fair, though the government is also exploring a more traditional tax model.

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A 23% Tax for Undocumented Crypto Assets?

Under Ukraine’s current tax rules, individuals pay an 18% income tax plus a 5% military tax, bringing the total to 23%. If applied to crypto earnings, this could significantly increase tax burdens for investors.

One key part of the bill is a 23% tax on undocumented crypto assets. Investors who cannot prove the source of their initial investment may have to pay this higher tax rate.

A lower tax could drive adoption, while a stricter framework might push investors to rethink their strategies – Ukraine’s crypto scene is at a turning point.

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