Ukraine prepares draft law to regulate cryptocurrency
It follows the country’s reliance on digital assets for aid during the Russian invasion.
Ukraine is making significant progress towards legalising cryptocurrency, with a draft law set 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, confirmed that the legislation is being developed in collaboration with the National Bank of Ukraine and the International Monetary Fund.
The proposed law aims to regulate cryptocurrency transactions and introduce taxation similar to securities. Profits from digital assets will be taxed only when converted into fiat currencies, avoiding tax exemptions to prevent potential misuse. European experts and the IMF have provided input to shape Ukraine’s cautious approach to the emerging market.
Ukraine’s journey towards crypto adoption has been accelerated by its reliance on digital assets during the Russian invasion, receiving millions in crypto donations for humanitarian and military purposes. With the first reading of the bill expected after the New Year, the country is aligning its regulations with international standards, including FATF compliance introduced in late 2023.
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