Ukraine to Legalize Cryptocurrencies with Regulations by Early 2025
Ukraine plans to legalize cryptocurrencies by early 2025, focusing on regulations and taxation without special tax incentives. The legislation aims to regulate digital assets, ensuring financial stability and addressing risks like tax evasion and money laundering.
The draft law, developed with input from the National Bank of Ukraine (NBU) and the International Monetary Fund (IMF), will impose taxes on cryptocurrency profits converted into fiat currency, treating them similarly to securities trading. A working group is finalizing the bill, with a first parliamentary reading expected in early 2025. This framework will emphasize compliance with anti-money laundering (AML) standards and prioritize economic transparency.
Daniil Getmantsev, head of the tax committee of the Verkhovna Rada, stated that tax exemptions for crypto transactions were ruled out to prevent misuse and avoid opportunities for tax evasion while aligning with global regulatory practices.
Amid its conflict with Russia, Ukraine views cryptocurrency as a means for financial security. Digital assets provide alternatives for cross-border transactions, allowing citizens to bypass disrupted traditional banking systems. Cryptocurrencies contributed nearly $70 million to Ukraine’s defense and aid initiatives in 2023.
Ukraine’s move mirrors global trends. Russia has banned crypto mining in occupied Ukrainian regions but eased domestic crypto tax policies, exempting transactions from VAT and capping income tax on crypto earnings at 15%. Morocco is drafting regulations to replace its 2017 crypto ban, while Argentina is exploring Bitcoin payments by 2025 to enhance currency freedom.
Ukraine’s efforts to legalize cryptocurrencies represent a significant step toward integrating digital assets into its financial system while ensuring transparency and fiscal accountability. This initiative illustrates how cryptocurrencies can provide economic resilience during crises, aligning with the global shift toward regulated crypto adoption.