Key information
- Ukraine plans to legalize cryptocurrencies by the first quarter of 2025.
- Transactions involving cryptocurrencies will not be tax-exempt, and profits will only be taxed when converted to traditional fiat currency.
- The regulatory framework was developed in collaboration with the National Bank of Ukraine and the International Monetary Fund (IMF).
Ukraine intends to legalize cryptocurrencies by the first quarter of 2025. The government plans to establish a regulatory framework for cryptocurrencies without offering tax exemptions. This new legislation, developed in collaboration with the National Bank of Ukraine and the International Monetary Fund (IMF), will establish a taxation system similar to that applied to securities.
The announcement was made by Danylo Hetmantsev, who heads the Ukrainian Parliament’s Committee on Finance, Taxation and Customs Policy. He revealed that the working group had finalized a bill for its first reading and expected to complete it after the New Year. The aim is to pass this legislation and officially legalize cryptocurrencies within of the first quarter of 2025.
Regulatory framework for Ukraine
Hetmantsev clarified that while Ukraine will legalize cryptocurrencies, transactions involving them will not be exempt from taxes. Instead, profits derived from crypto will only be taxed when digital assets are converted into traditional fiat currency. This approach was influenced by consultations with European experts and the IMF, aiming to prevent potential tax avoidance in conventional financial markets through strong regulations.
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