en.coinotag.com
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Ukraine is set to legalize cryptocurrencies by early 2025, focusing on comprehensive regulation to foster trust and fiscal oversight in the crypto sector.
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The proposed legislation will institute taxes on crypto-to-fiat conversions and emphasize robust financial stability and anti-money laundering measures.
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With increasing global crypto adoption, Ukraine’s initiative aims to create a transparent environment for digital asset transactions amidst ongoing wartime challenges.
Ukraine is aiming to legalize cryptocurrency by 2025, implementing strict regulations and taxes on crypto profits amidst ongoing conflict and economic challenges.
Ukraine Crypto Regulation Will Impose Tax on Crypto Profits
The draft bill currently under review involves collaboration between the National Bank of Ukraine (NBU) and the International Monetary Fund (IMF) to set a regulatory framework for digital assets. Notably, the initial proposals for tax exemptions have been rejected.
Instead, the incoming cryptocurrency regulation will require taxes on profits earned from crypto transactions converted into fiat currencies, aligning similar protocols to those that govern securities trading. This approach is intended to ensure fair taxation and prevent tax evasion.
Moreover, a specialized working group is diligently pushing the draft legislation forward, with hopes of presenting it for its first parliamentary hearing in the first quarter of 2025. The key objectives of this framework are to oversee digital asset transactions while enhancing financial stability and adherence to 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,” stated Daniil Getmantsev, head of the tax committee.