Ukraine is getting ready to join the crypto world! Lawmakers are working on a bill to legalize cryptocurrencies, aiming for a launch in early 2025.
No Tax Breaks for Crypto
While the legalization is happening, don’t expect any special tax treatment for your digital assets. The plan is to tax crypto profits the same way they tax profits from stocks and other securities – you’ll pay taxes when you sell your crypto and convert it to regular money. The government is taking a cautious approach, working with the IMF and European experts to avoid any loopholes that could lead to tax evasion.
A Long Time Coming
Ukraine actually passed a law about virtual assets back in March 2022. However, it needed some updates to the tax code to be fully implemented. This delay cost Ukraine millions in potential tax revenue because crypto exchanges weren’t legally required to pay taxes on their earnings. The IMF even stepped in, urging Ukraine to finalize its crypto laws by the end of 2024, citing concerns about price stability and the efficiency of monetary policy.
Boosting the Economy
The Ukrainian government sees crypto legalization as a big opportunity to boost the economy. They believe it could generate billions of hryvnias in revenue and attract more international investment. This is especially important considering the ongoing war and the country’s need for economic growth. It’s also worth remembering that Ukraine has already received substantial crypto donations since the start of the Russian invasion, showing the potential of the crypto market for the country.
