cryptojournalist
Strict Regulations and Standard Taxation
Ukraine is set to legalize cryptocurrencies by early 2025, according to Daniil Getmantsev, head of the tax committee. This move will not include tax breaks, and crypto profits will be taxed like securities trading when converted to fiat currency*.
Draft Legislation
The proposed bill, created with the National Bank of Ukraine (NBU) and the IMF, aims to regulate digital assets while maintaining financial stability. It will introduce AML measures to ensure a secure environment for both investors and businesses. The first parliamentary reading is planned for early 2025.
Crypto Use During Wartime
In the face of war with Russia, legalizing crypto could help Ukrainians access financial support and protect their assets from inflation. It also enables smoother cross-border transactions, crucial when traditional banking may be disrupted. Cryptocurrencies have already been essential in humanitarian aid and crisis stability.
No Tax Incentives
Despite global examples where tax benefits are offered, Ukraine’s policy will exclude tax breaks. Getmantsev pointed out that such incentives could be exploited for tax evasion, so the country will apply standard taxation when crypto is converted into fiat.
*Footnote: Fiat currency refers to government-issued currency that is not backed by a physical commodity but by the government that issued it.
