Ukraine Prepares for Crypto Legalization in 2025, Excludes Tax Exemptions

Ukraine plans to legalize cryptocurrency by the first quarter of 2025, introducing regulations without offering tax exemptions.

According to a recent report by Ukrainska Pravda, the proposed legislation, developed with input from the National Bank and the International Monetary Fund, outlines a taxation framework for crypto similar to securities.

Ukraine to Legalize Crypto in Q1 2025

The announcement was made by Danylo Hetmantsev, Head of the Ukrainian Parliament Committee for Finances, Tax, and Customs Policy, during the Domestic Investment Opportunities forum hosted by Ekonomichna Pravda.

“If we’re talking about cryptocurrency, the [parliament’s] working group is finalising 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,” said Hetmantsev.

“We aim to pass this law and legalize cryptocurrency in the [2025’s] first quarter,” stated Hetmantsev.

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Hetmantsev emphasized that crypto transactions in Ukraine will not benefit from tax exemptions. Instead, the taxation framework will mirror that applied to securities, with profits taxed only when digital assets are converted into fiat currency.

He highlighted that consultations with European experts and the International Monetary Fund (IMF) influenced this decision, aiming to prevent potential tax evasion in conventional financial markets through careful regulatory measures.

El Salvador to Revise Bitcoin Policy for IMF Loan

The IMF played a central role in shaping El Salvador’s decision to revise its Bitcoin policy. As part of the conditions for a $1.3 billion loan agreement, it has pressed for the removal of mandatory Bitcoin acceptance in the country, citing concerns over financial stability.

IMF representatives have consistently opposed the 2021 law that established Bitcoin as legal tender in El Salvador, arguing that it poses risks to the nation’s financial integrity.

The agreement, which is still under discussion, is expected to unlock further international funding. Potential contributions include $1 billion from the World Bank and $1 billion from the Inter-American Development Bank.