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In the latest development, Ukraine is poised to legalize cryptocurrency by the first quarter of 2025. However, while the country aims to regulate the industry, it is unlikely to offer tax exemptions for cryptocurrency transactions.
Danylo Hetmantsev, the head of Ukraine’s Parliamentary Committee on Finance, Tax, and Customs Policy, noted that a parliamentary working group is finalizing the first reading of a draft law on cryptocurrency. He expressed confidence that the text, developed in collaboration with the National Bank and the International Monetary Fund (IMF), will be ready shortly after the New Year. They aim to pass this legislation and legalize cryptocurrency by early 2025.
Hetmantsev noted that there will be no tax exemptions for cryptocurrency. Taxation will follow the model used for securities, with profits taxed when assets are converted into currency.
Hetmantsev explained that, after consulting with European experts and the IMF, they are taking a very cautious approach to using cryptocurrencies for tax exemptions, as this could potentially lead to tax evasion in traditional markets.
Notably, A draft law on the specifics of taxing virtual asset transactions was registered in Ukraine’s parliament in November 2023. The adoption of this document marks the final step toward the legalisation of cryptocurrencies in Ukraine.