Ukraine Plans to Legalize Cryptocurrency in Early 2025

The Ukrainian government plans to legalize cryptocurrency in Q1 2025, applying the same tax rules for digital assets as for securities.

A working group of the Verkhovna Rada, with support from the National Bank of Ukraine (NBU) and the International Monetary Fund (IMF), is finalizing a draft law on crypto legalization in Ukraine. The bill is expected to be passed in Q1 2025, according to Danylo Hetmantsev, Chair of the Verkhovna Rada’s Committee on Finance, Taxation and Customs Policy, during the Prospects for Domestic Investment forum organized by the publication Ekonomichna Pravda.

The primary goal of the draft law is to regulate digital assets while ensuring fiscal oversight. According to the official, there’ll be no tax exemptions for cryptocurrency. The taxation will follow a securities model, digital assets will be taxed when converted into foreign currency.

On November 8, a bill regulating the circulation of virtual assets in Ukraine was registered in the Verkhovna Rada. The adoption of this document will be the final step in the country’s cryptocurrency legalization process.

In October 2024, Ukraine ranked sixth in the global crypto adoption index, according to the analytical company Chainalysis. The country was previously a leader in the pace of crypto adoption.