Ukraine to Legalize Crypto by 2025 with Strict Rules
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Written by
Yana Levkovich - Updated 2024-12-12 16:23:01
Ukraine plans to legalize cryptocurrencies by early 2025, applying standard tax rules without offering any special breaks. Daniil Getmantsev, head of Ukraine’s tax committee, confirmed the legislation is under review and will align with the National Bank of Ukraine (NBU) and the International Monetary Fund (IMF).
The proposed law will regulate digital assets while ensuring proper tax oversight. Profits from crypto transactions will be taxed once converted into fiat currency, similar to how securities trading is taxed.
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A Step Toward Regulation
A working group is finalizing the draft bill, expected to be ready for parliamentary review in early 2025. The framework will focus on financial stability and anti-money laundering (AML) compliance, ensuring a secure environment for crypto investors and businesses.
Cryptocurrencies have already proven useful in Ukraine during the ongoing war, helping facilitate donations, financial aid, and cross-border transactions. The new law could provide Ukrainians with a regulated way to protect their assets and conduct transactions, even in unstable times.
No Tax Incentives
Despite industry hopes, Ukraine will not offer tax breaks for crypto. Profits will be subject to capital gains tax once converted to traditional currencies. Getmantsev explained this cautious approach is aimed at preventing tax evasion and ensuring that the country benefits from crypto-related revenue.
A Growing Trend
Ukraine’s move mirrors global efforts to regulate digital assets. Eastern Europe has seen a surge in decentralized finance (DeFi), with over $499 billion in crypto transactions between mid-2023 and mid-2024, according to Chainalysis.
Elsewhere, Morocco is also working on legalizing crypto. After banning digital currencies in 2017, the country is drafting new laws to regulate the industry and exploring the potential of a central bank digital currency (CBDC).
