Ukraine plans to impose an 18% tax on cryptocurrency gains starting from 2024.
The Ukrainian government is planning to tax profits from cryptocurrency at 18% starting in 2024, pending a vote on the proposal this autumn. According to Forbes Ukraine, the National Commission for Securities and the Stock Market will be presenting a draft law to lawmakers in the next parliamentary session. The proposal includes a flat-rate 18% tax on income from cryptocurrency investments, with the exception of military servicepeople who will only be required to pay 1.5%. Yuriy Boyko, a member of the commission, stated, “We hope that the law will be adopted in September, and will come into force in 2024.” The commission is also proposing to grant itself and the central bank regulatory powers over the cryptocurrency sector. The draft law would also require all Ukrainian crypto exchanges and brokerages to apply for commission-issued operating permits. Recently, Kyiv has been attempting to align its cryptocurrency regulations with those of the EU and wants to introduce regulations in the spirit of the EU’s Markets in Crypto-Assets (MiCA) legislation. However, the news has been met with mixed reactions from the nation’s cryptocurrency community. Mykhailo Chobanyan, the founder of the Kuna crypto exchange, warned that Kyiv should not rush into action and that it was necessary to determine why, how, and when regulation is needed before legislating. Meanwhile, a legal expert quoted by media outlet Forklog opined that an 18% tax rate could deter investors and possibly provoke an outflow of users and crypto companies from Ukraine. The central bank has called for regulations that balance the need to protect consumers’ interests with financial stability and take into account the peculiarities of the nation’s legal and financial system. Kyiv has also vowed to take steps to fight a perceived rise in “crypto-powered corruption.”