Ukraine’s Bold Crypto Move: Legalizing Digital Assets by 2025 – No Tax Breaks, But Big Gains

Ukraine plans to legalize cryptocurrency by early 2025, according to recent reports.

Cointelegraph reported on Thursday that Ukraine plans to legalize cryptocurrency by early 2025. However, the proposed legislation will not include any tax exemptions.

The draft law, drafted by the National Bank of Ukraine (NBU) and the International Monetary Fund (IMF), is currently under review and expected to be finalized by early 2025. It primarily aims to regulate digital assets while ensuring financial supervision.

The legalized framework will apply standard tax rules similar to those for securities exchange. This means that all profits from cryptocurrency transactions will be subject to taxation when converted to fiat currency.

Given the ongoing war with Russia, the legalization of cryptocurrency could provide Ukrainian citizens with alternative access to financial support, bypassing traditional banking systems that may be disrupted during the conflict. Additionally, it offers a potential safeguard against inflation, providing a way to protect assets during a time of economic uncertainty.