According to Odaily, Ukraine is on track to legalize cryptocurrency by the first quarter of 2025, although it is unlikely to offer tax exemptions for crypto transactions. Danylo Hetmantsev, the head of Ukraine's Parliamentary Committee on Finance, Tax, and Customs Policy, stated that a parliamentary working group is finalizing the first reading of a draft law on cryptocurrency. He expressed confidence that the text, developed in collaboration with the National Bank and the International Monetary Fund (IMF), will be ready shortly after the New Year. The aim is to pass this legislation and legalize cryptocurrency by early 2025.
Hetmantsev further clarified that cryptocurrencies will not be exempt from taxes. The taxation model will mirror that of securities, with profits being taxed when assets are converted into currency. After consultations with European experts and the IMF, Ukraine has adopted a cautious approach towards tax exemptions for cryptocurrency use, as such exemptions could potentially exacerbate tax evasion in traditional markets. This careful stance reflects a broader concern about maintaining fiscal integrity while integrating digital currencies into the national economy.