Ukraine is making significant strides toward legalizing cryptocurrency, with a draft law expected to be ready for its first reading by early 2025.
Danylo Hetmantsev, head of the Ukrainian Parliament’s Committee on Finance, Tax, and Customs Policy, announced that the legislation is being developed in collaboration with the National Bank of Ukraine and the International Monetary Fund (IMF). This initiative is part of Ukraine’s broader efforts to align its financial system with international standards, including those of the Financial Action Task Force (FATF).
As per the reports of Leaders team, the proposed law will regulate cryptocurrency transactions and introduce taxation similar to that applied to securities. Under the plan, profits from digital assets will be taxed only when converted into fiat currencies, a measure designed to prevent tax evasion while promoting transparency. European experts and the IMF have provided crucial input to ensure a cautious yet progressive approach to this emerging market.
Ukraine’s embrace of cryptocurrency has been accelerated by necessity. According to the reports from Leaders team, during the Russian invasion, the nation received millions of dollars in crypto donations, which were used for humanitarian aid and military support. This demonstrated the potential of digital assets in crisis scenarios, solidifying the government’s commitment to integrating cryptocurrency into its financial ecosystem.
In addition to FATF compliance, Ukraine’s draft law seeks to balance innovation and regulation, ensuring that digital currencies can flourish while minimizing risks such as money laundering or misuse. Once passed, the legislation will position Ukraine as a leader in the region for crypto adoption, potentially boosting investment and technological growth.
The first reading of the bill is scheduled for after the New Year, signaling a new chapter for Ukraine’s digital economy as it aligns with global best practices.
