Ukraine to Legalize Crypto by Summer 2025: New Tax, Oversight Rules

Ukraine is set to legalize cryptocurrency by summer 2025, with new regulations on taxes, oversight, and digital asset policies. Lawmaker Danylo Getmantsev has stated that the primary structure of the legislation is almost complete, but officials are still engaged in talks regarding tax regulations and financial oversight strategies. This shift in legislation marks a significant step for Ukraine in its digital asset policy.

The authorities have decided to implement taxes on cryptocurrency according to traditional investment principles. Ukraine has chosen not to follow other nations that provide tax benefits for crypto investments, as expert assessments suggest that providing such advantages would be disadvantageous for all industries. Standard taxation rates will be implemented by the government to maintain fairness in the system.

One of the main challenges in this process involves managing current cryptocurrency owners who have purchased crypto using untraceable methods. All cryptocurrency holders will be required to pay taxes on their entire investment amount when this law comes into effect. This legislation aims to increase public visibility within financial operations.

The regulation of cryptocurrency requires determining which regulatory authority should be in charge. According to current expectations, the regulatory functions of cryptocurrency oversight will fall under the responsibility of the National Securities and Stock Market Commission. However, Getmantsev has reservations about the NSSMC's suitability to properly manage the market and has recommended that the National Bank of Ukraine (NBU) take over crypto regulation duties for the time being. He has stated that the regulatory authority might shift towards a different institution in the future.

The first draft of the cryptocurrency legislation will undergo its initial reading during early 2025. Getmantsev has declared that the government continues working towards passing the law before summer arrives. Ukraine demonstrates its dedication to combining digital assets with its economic system through this strategic document that aims to maintain regulatory control.

The Ministry of Finance has received information that National Security and Anti-Corruption Council members predict crypto legalization will happen before mid-2025. Yuriy Boyko, who represents the commission, agrees that the established timeline for implementation is reasonable.

Ukraine continues to build its framework for cryptocurrency laws through various recent developments. The forthcoming law will establish regulatory norms that apply to investors as well as businesses and financial institutions, aligning the country with global trends in digital asset regulation.