Solutions from Ukraine: Ukraine to legalize cryptocurrency by 2025 but with no tax incentives

Ukraine is likely to legalize cryptocurrency in the first quarter of 2025, but one should not count on preferential taxation conditions.

The head of the Verkhovna Rada Tax Committee, Danylo Hetmantsev, stated this at the EP forum "Prospects for Investments Within the Country."

"If we talk about cryptocurrency, the working group is completing the preparation of the relevant draft law for the first reading. I think that the text, together with the National Bank and the IMF, will be after the New Year, and in the first quarter, we will adopt this draft law, legalizing cryptocurrency," he said.

According to him, cryptocurrency will not have tax benefits. It will be applied according to the securities model—profit will be taxed when assets are transferred to currency.

"In consultations with European experts and the IMF, we are very cautious about using cryptocurrency with tax benefits, as a possibility of evading taxation in traditional markets," Hetmantsev explained.

Hetmantsev noted that he does not use cryptocurrencies but supports transparency and regulation in this area.

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Recall that on December 5, the value of Bitcoin exceeded $100,000 for the first time. This happened after investors bet on new nomination announcements in the next administration of the United States.