Ukraine is preparing to legalize cryptocurrencies by early 2025, according to Daniil Getmantsev, head of the tax committee of the Verkhovna Rada. 

The new legislation is currently under review. It aims to regulate digital assets while maintaining standard taxation practices.

Ukraine Crypto Regulation Will Impose Tax on Crypto Profits

According to local reports, The draft bill is being finalized in collaboration with the National Bank of Ukraine (NBU) and the International Monetary Fund (IMF). However, earlier hopes for tax exemptions have been dismissed.

Instead, the new Ukraine crypto regulation will impose taxes on crypto profits converted into fiat currencies, following rules similar to those for securities trading. 

Also, a specialized working group is advancing the draft legislation, targeting its first parliamentary reading in the first quarter of 2025. The framework will oversee digital asset transactions and focus on financial stability and compliance with Anti-Money Laundering (AML) standards.

“In consultation with European experts and the IMF, we are very careful about the use of cryptocurrency in tax incentives as an opportunity to evade taxation in traditional markets,” said Daniil Getmantsev.

Amid the ongoing conflict with Russia, cryptocurrency legalization could provide Ukrainians with secure financial tools. Digital assets may offer alternatives for cross-border transactions, safeguarding wealth during wartime and bypassing traditional banking systems disrupted by conflict. 

Cryptocurrencies have already played a vital role in humanitarian aid,
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Author: Mohammad Shahid