Ukraine is set to legalize cryptocurrency by the first quarter of 2025, establishing regulatory frameworks but without offering tax exemptions. According to a report by Ukrainska Pravda, the proposed legislation—developed in consultation with the National Bank of Ukraine and the International Monetary Fund (IMF)—will introduce a taxation model for cryptocurrencies akin to that applied to securities.
Ukraine to Legalize Cryptocurrency in Early 2025
The announcement was made by Danylo Hetmantsev, Chair of the Ukrainian Parliament Committee for Finance, Taxation, and Customs Policy, during the Domestic Investment Opportunities forum organized by Ekonomichna Pravda. Hetmantsev stated that the parliamentary working group is finalizing the draft law for its first reading, with the text expected to be ready shortly after the New Year.
“Our goal is to pass this law and fully legalize cryptocurrency within the first quarter of 2025,” Hetmantsev said. He further clarified that profits from crypto transactions would not be exempt from taxes. Instead, taxation will apply when digital assets are converted into fiat currency, following a framework similar to that used for securities.
Regulatory Intent and Avoidance of Tax Evasion
Hetmantsev highlighted that the decision to tax crypto profits was guided by consultations with European financial experts and the IMF. The aim is to ensure that regulatory measures are robust enough to prevent tax evasion in conventional financial systems. The policy also reflects an effort to align with international best practices while fostering a sustainable digital asset ecosystem within Ukraine.
El Salvador’s Bitcoin Policy Revisions for IMF Loan
Meanwhile, El Salvador, which legalized Bitcoin as legal tender in 2021, is revisiting its Bitcoin policy under pressure from the IMF. The revision is part of conditions attached to a $1.3 billion loan agreement, which demands the removal of mandatory Bitcoin acceptance due to concerns over financial stability and systemic risks.
The IMF has consistently criticized El Salvador’s Bitcoin law, arguing it jeopardizes the nation’s financial integrity. The ongoing negotiations aim to unlock additional international funding, potentially including $1 billion from the World Bank and $1 billion from the Inter-American Development Bank. These contributions could provide a significant boost to the country’s economic landscape.