Ukraine wants to regulate the cryptocurrency sector in 2025, but plans to offer no tax incentives for the sector.
Speaking at a recent forum, the head of the Verkhovna Rada’s tax committee, Daniil Getmantsev, confirmed Ukraine’s plans to finalize a draft bill to regulate the crypto space by the first quarter of 2025.
The bill is currently being reviewed by a dedicated working group formed by the National Bank of Ukraine (NBU) and the International Monetary Fund (IMF) to ensure comprehensive regulation of digital assets with a focus on financial stability, fiscal surveillance, Working together. and compliance with anti-money laundering (AML) measures.
The goal here is to create a transparent and secure framework to promote a regulated cryptocurrency market for both investors and businesses.
no incentive
Previously, rumors had suggested that Ukraine’s regulatory approach would also offer tax incentives for the sector. However, Getamantsev has clarified that this will not happen.
Instead, the market will be subject to the same standard taxation rules as securities trading, with profits from cryptocurrency transactions converted into fiat currencies subject to capital gains tax.
With this approach, regulators aim to reduce the risks of tax evasion and ensure a steady flow of tax revenue into the country from crypto-related activities while maintaining fiscal integrity and reducing the potential for abuse through “tax incentives.” Let’s make a plan, which can be taken advantage of. “Tax Evasion in Traditional Markets.”
The development comes as the war between Ukraine and Russia continues to impact the local economy, making cryptocurrencies a vital way to access financial support, protect assets from inflation and facilitate cross-border transactions without relying on traditional banking systems. The tools are expected to be in place, which often happens during times of crisis.
Bitcoin had already become an important asset for Ukrainians during the war, providing a reliable means of transferring money, receiving donations, and protecting savings against inflation.
It has a decentralized nature proved to be flexibleAllows individuals and organizations to bypass restrictions imposed by disrupted banking systems and government controls, further strengthening its role as a store of value and lifeline in times of crisis.
Meanwhile, the IMF has urged Ukraine to accelerate its crypto legislation efforts.
Earlier this year, the nation signed the Memorandum of Economic and Financial Policies, which outlines the need to finalize an update to the virtual assets law by the end of 2024.
Russia is also strengthening crypto efforts
On the other hand, Russia has also intensified its efforts to gain control over the crypto sector.
Last month, President Vladimir Putin signed a law Which allows the country to tax crypto assets as property and regulate the mining sector.
However, Russia offers exemption from value added tax (VAT) on crypto mining and sales of digital currencies, unlike Ukraine, which has not yet introduced such provisions into its regulatory framework.
Also, there have been talks on establishing bitcoin strategic reserve Following in the footsteps of the Donald Trump-led United States.
Post Ukraine plans to finalize crypto regulations by early 2025 first appeared on Invez
