Ukraine is progressing towards legalising cryptocurrency, with a draft law expected to be ready for its first reading by early 2025.
Danylo Hetmantsev, head of the Ukrainian Parliament’s Committee on Finance, Tax, and Customs Policy, confirmed the legislation’s development in collaboration with the National Bank of Ukraine and the International Monetary Fund.
The proposed law seeks to regulate cryptocurrency transactions and implement taxation similar to securities. Profits from digital assets will be taxed only when converted into fiat currencies, aiming to prevent misuse by avoiding tax exemptions. European experts and the IMF have provided valuable input to help shape Ukraine’s cautious stance towards this emerging market.
Ukraine’s push for crypto adoption has been expedited by its use of digital assets during the Russian invasion, where it received millions in crypto donations for humanitarian and military purposes. With the first reading of the bill scheduled for after the New Year, Ukraine is aligning its regulations with international standards, including FATF compliance introduced in late 2023.
