On December 12, 2024, Ukraine is making significant strides towards legalizing cryptocurrencies, with a draft bill expected to be finalized in collaboration with the International Monetary Fund (IMF). Danylo Hetmantsev, head of the Ukrainian Parliament's Committee on Finance, confirmed that the legislation aims for approval by early 2025, targeting the first quarter for implementation.
The proposed law will enforce taxation on crypto-to-fiat conversions to prevent tax evasion, reflecting a cautious approach advised by European experts and the IMF. This follows the parliament's receipt of a draft law in November 2023 that outlines the taxation framework for virtual asset transactions, marking a pivotal step in establishing regulatory guidelines for Ukraine's digital asset market.
Historically, Ukrainian public officials have shown significant cryptocurrency ownership, with civil servants reporting holdings of 46,351 bitcoin worth approximately $2.7 billion in 2021, and notable individual cases such as a young politician declaring $24.6 million in monero.