Ukraine to tax crypto like securities when it becomes legal next year

Ukraine is expected to legalize crypto in early 2025 and its taxation will follow the model used for securities. This is according to the Head of the Ukrainian Parliament Committee for Finances, Tax and Customs Policy, Danylo Hetmantsev.

As reported by local outlet Ukrainska Pravda, a draft law on the taxing of virtual asset transactions in Ukraine was registered in the country’s parliament in November last year. The adoption of this document would mark a significant step toward the legalization of cryptocurrencies in Ukraine.

Speaking at a forum on domestic investment in Ukraine, Hetmantsev said, “If we’re talking about cryptocurrency, the [parliament’s] working group is finalizing a draft law for its first reading.

“I believe the text, developed in collaboration with the National Bank and the IMF, will be ready after the New Year. We aim to pass this law and legalize cryptocurrency in 2025’s first quarter.”

CHART: How bitcoin and crypto are taxed across the G7

Hetmantsev also noted that crypto taxation will follow the model used for securities. In other words, profits will be taxed when assets are converted into currency.

“In consultations with European experts and the IMF, we are taking a very cautious approach to using cryptocurrencies for tax exemptions, as it could potentially facilitate tax evasion in traditional markets,” he explained.

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