Ukraine's securities regulator has outlined a new framework to tax crypto income at a combined rate of up to 23%. The proposal excludes crypto-to-crypto transactions and stablecoins. The aim is to offer lawmakers a basis for creating informed and balanced regulation.

Under the suggested model, crypto income would face an 18% tax and a 5% military levy. It would apply only when crypto is converted to fiat or used for goods and services.

Stablecoins backed by foreign currencies may be exempt or taxed at a reduced rate of 5% or 9%. Ukraine's approach aligns with the tax policies of countries such as France, Austria, and Singapore.

The framework also addresses mining, staking, hard forks, and airdrops. Mining is considered a business activity, though a tax-free threshold is under consideration.

Staking could be taxed only when converted to fiat, while hard forks and airdrops may be taxed at receipt or conversion. Exemptions are being considered for crypto donations, family transfers, and long-term holders, though they may not apply to non-custodial wallets.

A draft bill to legalise cryptocurrencies has been under review since late 2023 and is expected to be finalised this year.