Ukraine Prepares to Legalize Cryptocurrencies by 2025, No Tax Incentives Planned

Ukraine plans to legalize cryptocurrencies by early 2025, imposing taxes on crypto-to-fiat conversions without tax exemptions. The legislation aims to regulate digital assets while ensuring financial stability.

Ukraine to Legalize Cryptocurrencies in 2025 With Standard Tax Policies

Ukraine is gearing up to legalize cryptocurrencies by early 2025, marking a significant step in integrating digital assets into its financial system. The announcement comes from Daniil Getmantsev, head of the tax committee of the Verkhovna Rada, who emphasized that the new framework will regulate crypto transactions without offering tax incentives.

Details of the Regulation

The draft legislation, currently in its finalization stage, is being developed in collaboration with the National Bank of Ukraine (NBU) and the International Monetary Fund (IMF).

• Taxation Policy: The regulation will impose taxes on profits from cryptocurrency converted into fiat currency, similar to rules governing securities trading.
• Compliance Focus: The framework aims to ensure financial stability and adherence to Anti-Money Laundering (AML) standards.
• Implementation Timeline: The bill is expected to undergo its first parliamentary reading in Q1 2025.

Daniil Getmantsev clarified that tax incentives would not be included, citing concerns over potential misuse for tax evasion in traditional markets:

“In consultation with European experts and the IMF, we are very careful about the use of cryptocurrency in tax incentives as an opportunity to evade taxation in traditional markets.”

Cryptocurrencies as a Financial Tool in Wartime

Amid the ongoing conflict with Russia, cryptocurrencies have emerged as a vital tool for Ukrainians. Digital assets offer a secure alternative for cross-border transactions and wealth preservation, especially as traditional banking systems face disruption.

Earlier this year, cryptocurrencies raised nearly $70 million in humanitarian aid, supporting Ukraine’s defense and relief efforts.

Global Context of Crypto Regulation

Ukraine’s move aligns with broader global trends in cryptocurrency adoption:

• Russia: Despite banning crypto mining in occupied Ukrainian regions like Donetsk and Lugansk, Russia has eased domestic tax policies, exempting transactions from VAT and capping income tax on crypto earnings at 15%.
• Morocco: The country is drafting regulations to replace its 2017 ban on cryptocurrencies.
• Argentina: Plans are underway to allow Bitcoin payments by 2025 to promote currency freedom.

These developments illustrate the global shift toward integrating cryptocurrencies into mainstream financial systems.

A Step Toward Accountability and Stability

Ukraine’s forthcoming legislation represents a balanced approach, aiming to create a transparent regulatory environment for digital assets. By emphasizing fiscal responsibility and financial stability, the country is paving the way for widespread adoption of cryptocurrencies within its borders.

Our creator. creates amazing NFT collections! 
Support the editors - Bitcoin_Man (ETH) / Bitcoin_Man (TON)

Pi Network (Guide)is a new digital currency developed by Stanford PhDs with over 55 million participants worldwide. To get your Pi, follow this link https://minepi.com/Tsybko and use my username (Tsybko) as the invite code.

Binance: Use this link to sign up and get $100 free and 10% off your first months Binance Futures fees (Terms and Conditions).

Bitget: Use this link Use the Rewards Center and win up to 5027 USDT!(Review)

Bybit: Use this link (all possible discounts on commissions and bonuses up to $30,030 included) If you register through the application, then at the time of registration simply enter in the reference: WB8XZ4 - (manual)