Ukraine is preparing a 23% tax on income from cryptocurrency transactions
Date: 2025-04-10 Author: Gabriel Deangelo Categories: IN WORLD
Ukrainian officials are considering introducing a 23% tax on profits from cryptocurrency transactions. According to government officials, such a measure is necessary, but its implementation faces a number of significant difficulties.
The main problem lies in the specifics of digital assets: transactions with them occur through decentralized protocols and are often anonymous. This makes tracking transactions almost impossible for tax authorities. An additional complication is the fact that responsibility for declaring crypto income is assigned to citizens, and not to third parties, as is the case, for example, with salaries or dividends, where the tax is withheld by the employer or bank.
Many market participants simply do not know what amounts they should indicate in tax reporting. This is especially true for those who received tokens through mining, airdrop or p2p exchange. In addition, due to the high volatility of cryptocurrencies, a situation may arise when a trader must pay tax on profits that have already disappeared due to a subsequent fall in the rate. Representatives of the commission admitted that this demotivates market participants to fulfill tax obligations and called on the authorities to make the reporting procedure more understandable and accessible.
The issue of public awareness is also raised. According to regulators, a significant portion of users do not even suspect that taxes must be paid on income from crypto assets. This can lead to massive violations, especially if regulation is implemented without a broad information campaign.
Earlier, Mikhail Chobanyan, founder of the KUNA crypto exchange, said that the crypto industry in Ukraine is under serious pressure from the National Bank of Ukraine. He emphasized that in such conditions, the development of the industry is almost impossible. At the same time, Danylo Getmantsev, who heads the parliamentary committee on finance, taxes and customs policy, promised in October 2024 that Ukraine would legalize cryptocurrency in the second half of 2025.
Thus, the tax initiative may become part of a broader strategy for regulating the crypto market, but its success will depend on the balance between control and support for innovation.
