Ukraine to Legalize Crypto in 2025, but Here’s the Catch | Airdrop Alert Pro

Ukraine will legalize cryptocurrencies in the first quarter of 2025, taking a major step towards regulating its digital economy. However, the country has made it clear that it will not provide tax exemptions for cryptocurrency transactions.

Danylo Hetmantsev, chairman of the Ukrainian Parliament’s Finance, Taxation and Customs Policy Committee, revealed that the parliamentary group is finalizing the first draft of the cryptocurrency law. The draft was developed in collaboration with the National Bank and the International Monetary Fund (IMF) and is expected to be ready shortly after the new year.

Hetmantsev believes the legislation will be passed, legalizing cryptocurrencies in Ukraine by early 2025.

• Also read:
• Ukraine Cryptocurrency Regulations 2024: How the Government Addresses Cryptocurrencies
• ,

Securities tax model

Hetmantsev famous Cryptocurrencies will not be tax exempt. Taxes will follow the pattern of securities, with profits taxed when the assets are converted into currency.

Hetmantsev explained that after consulting with European experts and the International Monetary Fund, they took a very cautious approach to using cryptocurrencies for tax exemptions, as this could lead to tax evasion in traditional markets.

final step to legalization

In November 2023, the Ukrainian Parliament registered a draft law on taxation of virtual asset transactions. Once this law is passed, it will complete the process of legalizing cryptocurrencies in Ukraine, opening the door to a new regulated digital asset framework.

The countdown to 2025 has begun as Ukraine prepares to join the growing list of countries accepting regulated digital assets.

FAQ