Ukraine to Legalize Cryptocurrency in Early 2025 with No Tax Exemptions Planned

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Ukraine Advances Crypto Regulation Plans for 2025
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A Landmark Bill to Legalize Cryptocurrency

Ukraine is set to legalize cryptocurrency, with a groundbreaking bill expected to pass its first reading by early 2025. Danylo Hetmantsev, head of the Ukrainian Parliament’s Committee on Finance, Tax, and Customs Policy, confirmed that the draft legislation is in its final stages. This significant development is the result of collaboration with the National Bank of Ukraine (NBU) and the International Monetary Fund (IMF), signaling Ukraine’s commitment to global financial integration.

The law in development will regulate cryptocurrency transactions and create a clear taxation model. This initiative showcases Ukraine’s growing interest in embracing digital innovation, positioning the country as a progressive leader in the crypto space.

Taxation Without Exemptions: A Balanced Approach

One of the most striking points of the legislation is its tax structure. The draft introduces a model similar to that applied to securities, taxing crypto profits only when they are converted into fiat currencies. This ensures that active traders and investors are not overburdened by unnecessary levies while maintaining compliance.

However, Hetmantsev stressed that tax exemptions would not be a part of the law. The careful approach is due to the concerns of misuse of this and the possible evasion of taxes in traditional financial markets. The critical input was also received from European experts and the IMF on the need for balanced policies, which would avoid abuse without killing innovation.

Ukraine’s Blockchain Journey

Interest from Ukraine in blockchain technology and digital assets has been consistent. It has integrated blockchain solutions into a number of state functions, showing quite a forward-thinking approach to governance.

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During the full-scale invasion by Russia in 2022, Ukraine received millions of dollars in cryptocurrency donations, important for humanitarian and military aid, which again showed the utility of decentralized, borderless financial systems during crises.

Moreover, Ukraine adopted FATF crypto standards at the end of 2023 to boost international compliance and avoid going on the grey list, further reflecting its commitment to aligning with global standards.

Next Steps: First Reading at the Beginning of 2025

The draft bill is set to be read for the first time in Parliament shortly after the New Year. If passed, the law will position Ukraine among the most important crypto players in the world. In so doing, not only does the country further fortify its financial system, but it also secures a leading position in the field of blockchain and digital currency adoption.

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