The Ukrainian government is considering introducing a 23% tax on cryptocurrency profits, while excluding stablecoins from this measure. This tax proposal, revealed in a new draft law, aims to further regulate the digital asset sector in a context of financial modernization accelerated by war and growing dependence on technological financing.
Crypto taxation currently being redefined
- A measure focused on capital gains: The 23% rate would be applied to income from cryptoasset transactions, with the exception of stablecoins, which would be considered payment instruments and not speculation.
- A desire for transparency: By establishing a clear tax system, Ukraine hopes to encourage users to declare their profits and further integrate the digital economy into the national legal system.
Strategic exclusion of stablecoins
- Protected low-volatility assets: Stablecoins, being pegged to fiat currencies, are perceived as tools of exchange rather than investment instruments, justifying their exclusion from this new tax.
- Encouragement of everyday use: The government appears to want to preserve the use of stablecoins for payments, cross-border transfers, and donations, which have played an important role in humanitarian and military financing since the beginning of the conflict.
Opportunities and risks for the Ukrainian ecosystem
Opportunities:
- Generate tax revenues while legitimizing crypto activity in the country.
- Strengthen transparency in the digital market by encouraging voluntary reporting.
Risks:
- High taxation could push some players to turn to the informal economy.
- The lack of clarity on the implementation procedures could discourage foreign investors.
Conclusion
With this proposed cryptocurrency tax, Ukraine is taking a step toward more structured regulation of the digital economy. By excluding stablecoins, it sends a signal of openness to innovation while laying the foundations for a modernized tax system. The challenge now will be to implement a balanced policy capable of securing state revenues without hindering the growth of a sector that is strategic for the country’s economic future.
