Ukraine is set to legalize cryptocurrencies by early 2025, focusing on clear regulations and taxation without offering any special tax incentives. The proposed legislation aims to regulate digital assets, ensuring financial stability while addressing risks such as 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, highlighted that tax exemptions for crypto transactions were ruled out to prevent potential misuse. The goal is to avoid creating opportunities for tax evasion while aligning with global regulatory practices. In the midst of its conflict with Russia, Ukraine sees cryptocurrency as a tool for financial security. Digital assets offer alternatives for cross-border transactions, helping citizens bypass disrupted traditional banking systems. Cryptocurrencies have already proven their value in humanitarian efforts, raising nearly $70 million for Ukraine’s defense and aid initiatives in 2023. Ukraine’s move reflects broader global trends. Russia recently banned crypto mining in occupied Ukrainian regions but softened its domestic crypto tax policies, exempting transactions from VAT and capping income tax on crypto earnings at 15%. Meanwhile, Morocco is drafting regulations to replace its 2017 crypto ban, and Argentina is exploring Bitcoin payments by 2025 to expand currency freedom. Ukraine’s efforts to legalize cryptocurrencies signal a significant step toward integrating digital assets into its financial system while ensuring transparency and fiscal accountability . The initiative also demonstrates how cryptocurrencies can offer economic resilience during times of crisis, aligning with the global shift toward regulated crypto adoption.
