Ukraine Set to Legalize Cryptocurrency and Implement Taxation in Early 2025

Ukraine is on track to legalize cryptocurrencies in early 2025, with plans to implement a tax structure similar to that of securities.

This update comes from Danylo Hetmantsev, the head of the Ukrainian Parliament’s Finance, Tax, and Customs Policy Committee.

According to local news outlet Ukrainska Pravda, a draft law that outlines how virtual asset transactions will be taxed was introduced in the Ukrainian parliament in November of the previous year. The approval of this legislation would mark a key milestone in the country’s efforts to regulate cryptocurrencies.

Hetmantsev shared insights during a forum discussing domestic investment in Ukraine, stating that the draft law is nearing its final stages and will soon be ready for its first reading in parliament. He further emphasized that the law, developed with input from the National Bank of Ukraine and the International Monetary Fund (IMF), is expected to be finalized after the New Year and aims for a passage in the first quarter of 2025.

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Regarding taxation, Hetmantsev confirmed that the framework for crypto taxes will mirror that of securities. This means that profits generated from cryptocurrency will be taxed when they are converted into fiat currency. He also highlighted that, after consulting with European experts and the IMF, Ukraine is being cautious in allowing tax exemptions for crypto transactions, recognizing the potential risk of enabling tax avoidance in traditional markets.

Kosta Gushterov