Ukraine set to legalise cryptocurrency in early 2025, without tax breaks

Cryptocurrency is expected to be legalised in Ukraine by the first quarter of 2025, but tax exemptions are unlikely.

Source: Danylo Hetmantsev, Head of the Ukrainian Parliament Committee for Finances, Tax and Customs Policy, during Ekonomichna Pravda’s forum called Domestic Investment Opportunities. 

Quote: "If we’re talking about cryptocurrency, the [parliament’s] working group is finalising a draft law for its first reading. I believe the text, developed in collaboration with the National Bank and the IMF, will be ready after the New Year. We aim to pass this law and legalise cryptocurrency in the [2025’s] first quarter," he stated.  

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.  

Quote: "In consultations with European experts and the IMF, we are taking a very cautious approach to using cryptocurrencies for tax exemptions, as it could potentially facilitate tax evasion in traditional markets," Hetmantsev explained.

Background: 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.

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