Originally published on: December 12, 2024
Reports suggest that Ukraine is gearing up to legalize cryptocurrencies by early 2025 under strict regulations, with no tax breaks expected to be included. The head of the tax committee, Daniil Getmantsev, revealed that the draft bill is currently in the works and is set to be finalized by early 2025 in collaboration with the National Bank of Ukraine (NBU) and the International Monetary Fund (IMF).
The primary goal of the legislation is to bring digital assets under regulatory control while ensuring proper fiscal oversight. This move aligns Ukraine with global trends and positions the country as a potential hub for regulated digital asset trading in Eastern Europe.
The proposed legislation will apply standard taxation rules similar to securities trading, meaning that all profits from crypto transactions will be taxed upon conversion to fiat currencies. Despite initial hopes for tax incentives, the committee is cautious about potential tax evasion risks and aims to use revenue from crypto-related activities to benefit the country and its government.
The legalization of cryptocurrencies could provide Ukrainians with a regulated way to access financial support, protect their assets from inflation, and facilitate cross-border transactions, especially during times of crisis like the ongoing conflict with Russia. Cryptocurrencies have already been used for humanitarian aid, donations, and financial stability in such situations.
While Ukraine works on regulating digital assets, other countries are also moving towards crypto-friendly policies. Morocco, for instance, is reportedly planning to legalize all cryptocurrencies as its central bank prepares a draft law for crypto regulation. The governor of the Moroccan central bank revealed that the draft law is in the adoption process, coinciding with a growing interest in Bitcoin as it approaches $100,000 in value.
As the crypto landscape continues to evolve, staying informed about laws and regulations is crucial for making informed decisions in the digital asset space. Stay updated with the latest developments by subscribing to newsletters like Law Decoded for insights into crypto laws and guidelines.
