Ukraine Plans to Legalize Cryptocurrency by Early 2025 With Tax Regulations
Ukraine aims to legalize cryptocurrency in the first quarter of 2025, introducing a regulatory framework that mirrors taxation policies for securities, without offering tax exemptions.
Legislation Development and Goals
Danylo Hetmantsev, Head of the Ukrainian Parliament Committee for Finances, Tax, and Customs Policy, announced the initiative at the Domestic Investment Opportunities forum hosted by Ekonomichna Pravda.
Hetmantsev stated that the proposed legislation, created in collaboration with the National Bank and the International Monetary Fund (IMF), is nearing completion and will be presented for its first reading shortly after the New Year. The law is expected to establish legal grounds for crypto activities and ensure proper taxation protocols.
Taxation and Regulation Framework
The legislation will tax crypto profits when digital assets are converted into fiat currencies, avoiding tax exemptions for crypto transactions. The framework aligns with conventional financial market regulations to mitigate risks of tax evasion. Hetmantsev emphasized that the decision was shaped by consultations with European experts and the IMF, aiming to balance innovation with regulatory responsibility.
Global Crypto Policy Trends
While Ukraine pushes forward with its crypto legalization plans, other nations, like El Salvador, are re-evaluating their crypto strategies under IMF guidance.
El Salvador, which recognized Bitcoin as legal tender in 2021, is now revising its Bitcoin policy as part of discussions for a $1.3 billion IMF loan. The IMF has urged the country to remove mandatory Bitcoin acceptance, citing financial stability concerns.
This decision is tied to unlocking additional international funding, including potential contributions of $1 billion each from the World Bank and the Inter-American Development Bank.
Ukraine’s move toward crypto regulation reflects a growing trend of integrating digital assets into national economies while ensuring financial oversight.
