Originally published on: December 12, 2024
Ukraine is gearing up to legalize cryptocurrencies by early 2025, under the watchful eye of Daniil Getmantsev, head of the tax committee of the Verkhovna Rada. However, this legislation will not come with any tax breaks for crypto transactions.
The proposed bill, currently in the works and expected to be finalized by early 2025, is a collaborative effort between the National Bank of Ukraine (NBU) and the International Monetary Fund (IMF). Its main goal is to bring digital assets under regulatory control while maintaining financial oversight.
Contrary to earlier rumors of potential tax benefits, the legalized framework will subject all profits from cryptocurrency transactions to standard taxation rules, akin to those governing securities trading. This means that any gains made from crypto dealings will be taxed upon conversion to fiat currencies.
This move to legalize cryptocurrencies in Ukraine aligns with global trends, positioning the country to potentially emerge as a regulated digital asset trading center in Eastern Europe.
In a bid to establish a structured approach to crypto operations, a dedicated task force is putting the finishing touches on the draft legislation. Getmantsev anticipates that the finalized version will be up for its first parliamentary reading in the initial months of 2025.
The legislation aims to oversee digital asset transactions while emphasizing financial stability and Anti-Money Laundering (AML) protocols. It seeks to create a transparent and legally sound framework for businesses and investors operating in the digital assets space.
Amidst the ongoing conflict between Ukraine and Russia, legalizing cryptocurrencies could provide Ukrainians with a regulated avenue to access financial aid, shield their assets from inflation, and facilitate international transactions, especially during times of disruption in traditional banking systems. Notably, cryptocurrencies have already played a pivotal role in humanitarian efforts, donations, and financial stability during crises.
Simultaneously, as Ukraine moves towards regulating digital assets, other countries are also making strides in this direction. Despite its ban on digital assets back in 2017, Morocco is reportedly on track to legalize all cryptocurrencies, as per reports from its central bank, Bank Al-Maghrib.
The governor of the Moroccan central bank, Abdellatif Jouahri, has disclosed that a “draft law” is currently in the adoption phase, coinciding with growing interest in Bitcoin as its value soared close to $100,000 in late November.
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