News View Non-AMP

Ukraine to Legalize Crypto in 2025, but Here’s the Catch

Published by
Nidhi Kolhapur

Ukraine is set to legalize cryptocurrency by the first quarter of 2025, taking a significant step toward regulating its digital economy. However, the country has clarified that it will not offer tax exemptions for cryptocurrency transactions.

Danylo Hetmantsev, head of Ukraine’s Parliamentary Committee on Finance, Tax, and Customs Policy, revealed that a parliamentary group is finalizing the first draft of a cryptocurrency law. Developed in collaboration with the National Bank and the International Monetary Fund (IMF), the draft is expected to be ready shortly after the New Year.

Hetmantsev is confident that the legislation will be passed, making cryptocurrency legal in Ukraine by early 2025.

Taxation Modeled on Securities

Hetmantsev noted that there will be no tax exemptions for cryptocurrency. Taxation will follow the model used for securities, with profits taxed when assets are converted into currency.  

Hetmantsev explained that, after consulting with European experts and the IMF, they are taking a very cautious approach to using cryptocurrencies for tax exemptions, as this could potentially lead to tax evasion in traditional markets.

Final Step to Legalization

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

The countdown to 2025 begins, as Ukraine prepares to join the growing list of nations embracing regulated digital assets.

FAQs

Why is Ukraine cautious about crypto tax exemptions?

Ukraine is cautious to avoid tax evasion, consulting with European experts and the IMF before considering crypto tax exemptions.

Nidhi Kolhapur

Nidhi is a Certified Digital Marketing Executive and Passionate crypto Journalist covering the world of alternative currencies. She shares the latest and trending news on Cryptocurrency and Blockchain.

Recent Posts

Ethereum’s Ambitious Plan to Scale TPS to 2,000 with 100x Gas Limit Boost

Dankrad Feist, a researcher from Ethereum, has unveiled a four-year plan to increase the blockchain’s…

April 28, 2025

Nexo Returns to the U.S. Market with New Offerings

Nexo has officially reentered the U.S. market, offering high-yield crypto savings accounts, asset-backed credit lines,…

April 28, 2025

China and U.S. Reduce Bitcoin Reserves, Total Government Holdings Fall 12% in Nine Months

Governments around the world continue to play an important role in the crypto space. However,…

April 28, 2025

Crypto Market Update Today: BTC and ETH Display Stability While PENGU, XMR, WAL Gain Massive Strength

After the rise in the past week, the investors have become more optimistic about the…

April 28, 2025

When Will Grayscale’s XRP ETF Finally Get Approved?

XRP’s journey through the crypto space has been nothing short of remarkable. With ProShares’ recent…

April 28, 2025

Adam Back Predicts Bitcoin Price Will Hit $500K to $1M by 2025 End

In the world of Bitcoin, few voices carry as much authority as Adam Back, CEO…

April 28, 2025