Ukrainian legislators are on the verge of making a significant decision regarding the legalization of cryptocurrency in the country. According to Danylo Hetmantsev, chairman of the Financial, Tax and Customs Policy Committee of the unicameral parliament Verkhovna Rada, there is a high likelihood that Ukraine will officially recognize and legalize cryptocurrency in the first quarter of 2025.
Hetmantsev stated, “If we talk about cryptocurrency, the working group is finalizing the drafting of the necessary bill for the first reading. I believe that the finalized text, in collaboration with the National Bank and the IMF, will be ready after the New Year, and we aim to pass this bill to legalize cryptocurrency in the first quarter of the year.”
However, it is important to note that cryptocurrency transactions in Ukraine will not be exempt from taxes. The government plans to impose taxes on profits generated from asset conversions, following a model similar to securities.
“In consultation with European experts and the IMF, we are proceeding with caution when it comes to providing tax benefits for cryptocurrency use, as it could potentially be exploited as a means to evade traditional market taxation,” Hetmantsev added.
This significant development in Ukraine’s cryptocurrency landscape is occurring amidst the backdrop of Russia’s invasion of the country. In response to Western sanctions causing payment delays that impact supply chains and costs, Russian lawmakers recently passed a bill allowing the use of cryptocurrency in international trade.
As the world closely monitors these legislative advancements, it is clear that the landscape of cryptocurrency regulation is evolving rapidly. Stay informed by subscribing to receive email alerts directly to your inbox and following us on Twitter, Facebook, and Telegram. Keep track of price action and explore more cryptocurrency news on The Daily Hodl Mix.
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