Ukraine’s top financial regulator flows the idea of ​​taxing cryptocurrency as personal income, with possible separations for certain foreign asset -backed stablecoins, during a recently proposed tax matrix published on Tuesday.

In a translated letter introducing the potential new approach, Ruslan Magomedov said, head of Ukraine’s national security and stock market commission that effective tax policy is a necessary step to prevent financial abuse and facilitate the “legal and responsible use of digital assets.”

“Establishing fair and understandable taxation rules is also a prerequisite for attracting investment and integrating the Ukrainian virtual asset market into the global financial market,” Magomedov added.

According to the NSMC’s proposed tax scheme, certain crypto-transactions — in the essentials are paid in which non-stableCryptocurrencies are designated to FIAT-currency or exchanged for goods or services and where there was no financial loss from the transaction-been taxed to Ukraine’s standard personal income tax of 18%, plus the additional 5% -gl.

Crypto-to-crypto transactions would not be subject to taxation under the proposed tax matrix, which is in line with how several other European countries, including Austria and France, as well as crypto-friendly jurisdictions like Singapore, handle crypto taxation.

Because Ukraine’s tax code exempts any income generated from transactions with currency values ​​from being taxed, NSMC suggested “It makes sense to consider a preferential rate or exemption from taxation” for foreign active -supported stableecoin and certain asset -hen tokens (art). The proposed preferential tax rate under the matrix could be either 5% or 9%.

The matrix also offered a number of tax options for other types of crypto transactions, including mining, which the NSMC proposed could be considered a “business activity”; The stake, as the regulator said, could either be “considered business prisoner income” or only taxed at the payment stage; as well as hard couplers and air drops, as the regulator said could either be taxed as ordinary income or only at the payment stage.

Ukraine had previously introduced a draft law that similarly changed the country’s tax code to cover cryptocurrency in 2023. A 2024 analysis from Swiss blockchain analytic company Global Ledger found that Ukraine could collect over $ 200 million in annual taxes from crypto transactions.

Ukrainian President Volodymyr Zelensky officially legalized the country’s cryptocurrency sector in 2022, decided the industry regulators and gave them go-ah to create specific rules. The National Bank of Ukraine is currently working on a draft law based on the European Union’s (EU) markets in Crypto Assets (MICA) regulation.

Ukraine has been a candidate for EU membership since 2022.

Coindesk reached out to NSMC for a comment.