Ukrainian Crypto Legalization Plan Will Be Promoted in 2025

Key Points:

• Ukraine plans to pass legislation to legalize cryptocurrency by early 2025.
• The Ukrainian crypto legalization plan will tax cryptocurrency profits, treating them like securities, with taxes applied when assets are converted to currency.

According to Pravda, Ukraine is making further progress in the legalization of cryptocurrency, promising to pass the required law by the beginning of 2025. Still, the authorities have made it clear that exemptions from taxation for crypto transactions are not being considered.

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Ukrainian Crypto Legalization Plan Expected to Be Announced by Early 2025

Danylo Hetmantsev, who chairs Ukraine’s Parliamentary Committee on Finance, Tax, and Customs Policy, said recently that a parliamentary working group was finalizing the draft law on cryptocurrency.

The Ukrainian crypto legalization plan, formulated in cooperation with the National Bank of Ukraine and the International Monetary Fund (IMF), is due for the first reading shortly after the New Year. Hetmantsev sounded very confident when he said the legislation would be passed at the beginning of 2025 and bring the country closer to the full legalization of cryptocurrency.

The future law, while finally bringing clarity to the crypto market, will also introduce taxation on profits. Crypto assets will be taxed in a similar way to securities, with profits subject to tax when converted into traditional currency.

Modernization of Financial Regulations to European Standard

The cautious approach to tax exemption by Ukraine was based on the recommendations of European experts and the IMF, who said that these exemptions could lead to increased risks of tax evasion in conventional markets.

The Ukrainian crypto legalization plan follows years of stalled efforts. In 2021, the Verkhovna Rada passed a draft law on virtual assets, which was later vetoed by the President for revisions.

Last year, the National Securities and Stock Market Commission proposed a taxation model for crypto assets, including an 18% tax on profits and a 1.5% military fee. It’s not clear whether this will form part of the current legislation.