Nikolas Sargeant
Ukraine is on track to legalize cryptocurrencies by the first quarter of 2025, according to Danylo Hetmantsev, head of the Ukrainian Parliament's Finance, Tax, and Customs Policy Committee. Speaking at the Ekonomichna Pravda Forum, Hetmantsev revealed that a draft law regulating crypto assets is nearing completion. Developed in collaboration with the National Bank of Ukraine and the IMF, the law is expected to undergo its first reading in 2025.
Despite the move toward legalization, Hetmantsev confirmed that crypto transactions will not benefit from tax exemptions. Profits from crypto conversions into fiat currency will be taxed, following a model similar to securities taxation. This cautious approach aims to prevent potential tax evasion, according to Hetmantsev, who added that consultations with European experts and the IMF informed the decision.
In November 2023, Ukraine took a major step toward cryptocurrency regulation by registering a draft law on taxing virtual asset transactions. This is expected to be the final hurdle before full legalization of crypto in the country. As Ukraine moves closer to integrating cryptocurrencies into its financial system, it joins a growing list of nations exploring ways to regulate and tax digital assets.
