Ukraine moves towards 'Legalization of Cryptocurrency', aiming to complete legislation in Q1 next year.

Ukraine is set to complete the 'Legalization of Cryptocurrency' in the first quarter of 2025. According to the Ukrainian Truth newspaper's report on Thursday, a working group in the Ukrainian parliament is collaborating with the Ukrainian Central Bank and the International Monetary Fund (IMF) to draft a draft law on the legalization of cryptocurrency.

Danylo Hetmantsev, chairman of the Financial, Tax and Customs Policy Committee of the Ukrainian Parliament, confirmed that this bill is close to completion and ready for a first reading. He is optimistic that the legislation is expected to be approved in early 2025.

He told the media that "our goal is to legalize cryptocurrency in Ukraine through this law in the first quarter."

The conversion of cryptocurrency into fiat currency will be taxed.

This bill will not only pave the way for the legalization of Crypto Assets, but also establish a tax system for Crypto Assets, which will be taxed similarly to securities transactions. In other words, when Crypto Assets are converted into fiat currency, the profits will be taxed. Danylo Hetmantsev said:

In consultations with European experts and the IMF, we have taken a very cautious approach to the tax-exempt part of using Crypto Assets, as it may promote tax evasion in traditional markets.

The Ukrainian parliament obtained a draft law outline on the taxation of virtual asset transactions in November 2023, which represents a key step towards the comprehensive legalization of cryptocurrency in Ukraine. The upcoming legislation aims to establish clear regulatory guidelines for exchanges, traders, and investors, creating a more stable and secure framework for the digital asset sector in Ukraine.

Ukrainian public officials' enthusiasm for Crypto Assets has long been known. For example, in 2021, several officials collectively declared ownership of 46,351 bitcoins, worth $2.7 billion at the time. It is noteworthy that the 19-year-old son of two parliament members declared holding Monero (XMR) worth $246 million at the time, and the son himself is also a local political figure.

The article 'Ukraine moves towards 'Crypto Assets legalization', striving to complete legislation in Q1 next year' was first published in 'Block Chain'.