Ukraine Plans to Legalize Cryptocurrencies with Innovative Tax Model by 2025
- Ukraine moves to legalize crypto by 2025
- Innovative tax model for cryptocurrencies
- Crypto conversions subject to taxation
A significant legislative movement is underway in Ukraine, aimed at legalization of cryptocurrencies by the first quarter of 2025. As reported by Ukrainska Pravda, a parliamentary working group, in collaboration with the National Bank and the International Monetary Fund (IMF), is preparing a bill that promises to revolutionize the tax treatment of digital assets in the country.
Danylo Hetmantsev, head of the Ukrainian Parliament’s Finance, Tax and Customs Policy Committee, revealed that the bill is close to being submitted for its first reading. “Our goal is to pass this law and legalize cryptocurrencies in the first quarter,” Hetmantsev said optimistically.
The core of the bill is not just legalization, but also the implementation of a tax regime for cryptocurrencies that resembles the treatment of traditional securities. The conversion of cryptocurrencies into fiat currencies will constitute a taxable event, marking a new phase in the taxation of these assets.
“In consultation with European experts and the IMF, we are taking a very cautious approach to the use of cryptocurrencies for tax exemptions, as this could facilitate tax evasion in traditional markets,” Hetmantsev explained.
Notably, Ukrainian public officials have a remarkable track record when it comes to cryptocurrency ownership. In 2021, several public officials reported owning a total of 46.351 bitcoins, valued at $2,7 billion at the time.
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