Bitcoin and cryptocurrencies gained a different perspective after Russia invaded Ukraine in 2022. Seeing the ease of use of crypto, Ukrainian President Volodymyr Zelensky approved a bill legalizing crypto assets in March 2022 to support his country against the Russian invasion.
It was stated that the law in question would allow Ukraine to launch a legal market for crypto assets and continue to work on the national cryptocurrency framework.
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Now, the long-awaited news about BTC and cryptocurrencies has come from Ukraine.
Ukraine plans to officially legalize cryptocurrencies in the first quarter of 2025, local news agency Pravda reported.
Speaking to Pravda, Danylo Hetmantsev, Chairman of the Ukrainian Parliament's Finance, Tax and Customs Policy Committee, said that cryptocurrencies such as Bitcoin are expected to be legalized in Ukraine in the first quarter of 2025, but there will be no tax exemption.
“If we are talking about cryptocurrencies, the parliamentary working group is finalizing a bill.
I believe that the draft law, developed in cooperation with the National Bank and the IMF, will be ready after the New Year. We aim to pass this law and legalize cryptocurrencies such as BTC in the first quarter of 2025.
In our consultations with European experts and the IMF, we take a very cautious approach to using cryptocurrencies for tax exemptions, as this could facilitate tax evasion in traditional markets.
So taxation will follow the model used for securities, with profits being taxed when assets are converted into currency.”
*This is not investment advice.
