Ukraine’s Nationwide Securities and Inventory Market Fee (NSSMC) unveiled its digital asset taxation matrix to advance the federal government’s efforts to legalize cryptocurrencies within the coming months.
Ukrainian Regulator Develops Crypto Taxation Matrix
Ruslan Magomedov, Chairman of the NSSMC, revealed the long-awaited regulator’s proposal for crypto taxation, aiming to supply a sensible instrument for taxpayers, regulators, lawmakers, and consultants that permits “structuring varied situations of taxation of digital property.”
The NSSMC Chair famous that taxation is “not solely a instrument for filling the funds but in addition an necessary mechanism for regulating the market,” including that an efficient tax coverage may stop monetary abuse, decrease cash laundering dangers, and create situations for the authorized and accountable use of digital property.
Moreover, with the crypto business’s international curiosity, adoption, and development, Ukrainian lawmakers should “implement a transparent, efficient, and honest taxation system for digital asset transactions.” In response to the 32-page doc, the principle problem for crypto taxation comes from the nameless and decentralized nature of digital asset transactions.
“In contrast to conventional earnings (wage, dividends), the place tax obligations are fulfilled by a tax agent (for instance, an employer or a financial institution), within the case of digital property, this operate should most frequently be carried out by the person himself. This creates dangers of improper declaration and administrative difficulties,” the taxation matrix reads.
The proposed tax construction introduces commonplace and preferential charges. The usual charge consists of an 18% private earnings tax on crypto earnings plus a 5% army levy, supposed to help Ukraine’s protection. In the meantime, the preferential tax outlines 5% and 9% charges for particular crypto classes.
Notably, crypto-to-fiat transactions are thought of earnings and topic to tax, whereas crypto-to-crypto exchanges are exempt. Tokens acquired from staking, mining, laborious forks, and airdrops “could also be taxed as abnormal earnings or taxed solely on the promoting stage.” Equally, gifted digital property, donations, and pockets transfers are exempt from taxation.
Ukraine’s Taxation Debate
Magomedov detailed that the taxation matrix was an NSSMC initiative that thought of the expertise of main jurisdictions, corresponding to Germany, Switzerland, Estonia, Singapore, and others, to measure “each the benefits and challenges within the taxation of digital property, adapting them to Ukrainian realities and authorized subject.”
It’s price noting that Ukrainian President Volodymyr Zelenskyy signed the “On Digital Belongings” legislation in March 2022, setting a authorized framework for regulating the digital asset market. By April 2025, the legislation has not been applied, because it awaits amendments to the nation’s Tax Code, which has resulted within the lack of thousands and thousands in potential tax income.
In December, the Head of the Ukrainian Parliament Committee for Funds, Tax, and Customs Coverage revealed lawmakers had been working to legalize digital property within the first half of 2025.
Nonetheless, the laws has been delayed as a result of taxation debate, with consultants forecasting that the invoice will probably be launched in late 2025 and crypto probably legalized by 2026.
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