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

XRP News: New Twist Emerges In Ripple SEC Case With Unusual Filing

Ripple’s XRP is back in the spotlight after a surprising new filing in the long-running…

April 4, 2025

Bitcoin & Ethereum ETFs See Major Outflows—BlackRock Stands Firm

April 3 marked another tough day for crypto ETFs, with Ethereum ETFs losing $3.59 million…

April 4, 2025

Bitcoin ETFs Face $100M Outflows as Markets Plunge Following Trump’s Tariff Shock

On Thursday, U.S. spot Bitcoin ETFs faced $99.86 million in net outflows as the stock…

April 4, 2025

Ethereum (ETH) Price Prediction for April 2025

Ethereum (ETH/USD) price held a crucial support range between $1,755 and $1,800 as the United…

April 4, 2025

Why Crypto Is Down Today: Traders React to Tariffs, Eye Fed’s Next Move

The crypto market has hit a rough patch, slipping to $2.65 trillion after a 1.02%…

April 4, 2025

Crypto Awaits Fed Rate Cut Decision Amid Recession Fears

Crypto markets went on a rollercoaster ride this week as investors reacted to President Trump’s…

April 4, 2025