Ukraine Aims to Establish Clear Crypto Regulations by Summer

• Ukraine plans to legalize crypto by the summer of 2025, finalizing tax policies and transaction monitoring rules.
• The government will tax crypto as an investment asset, ensuring no special benefits or lower tax rates for digital currencies.

Ukraine is pushing forward with its plans to regulate cryptocurrency, aiming to finalize a legal framework by the summer of 2025. Senior lawmaker Danylo Hetmantsev confirmed that the draft bill is largely complete, with discussions now focusing on tax policies and transaction monitoring. The government intends to treat crypto as an investment asset, meaning holders will be subject to standard taxation. 

Regulatory oversight remains a key issue, as the National Securities and Stock Market Commission (NSSMC) lacks the capacity to manage the sector, leaving the National Bank of Ukraine (NBU) as a possible interim regulator. Lawmakers expect the bill’s first reading in the first quarter of 2025, with full implementation targeted for mid-year.

Ukraine Moves Toward Crypto Legalization

Danylo Hetmantsev, head of the Verkhovna Rada’s Committee on Finance, Tax, and Customs Policy, stated that the core provisions of the crypto legalization bill are ready. Ukrainian media outlet Minfin reported that legislators are working through the final details, particularly on regulatory control and taxation. Kyiv has consulted international experts to ensure the framework aligns with global standards.

The government has clarified that cryptocurrency users will not receive tax benefits as authorities seek to maintain parity with traditional financial assets. Instead, crypto transactions will be taxed similarly to other investments, such as stocks. In some countries, crypto investments face steeper tax burdens, but Ukraine aims for a balanced approach.

A major unresolved issue is how to handle taxation for existing crypto holders who lack proof of their original purchases. Lawmakers are considering a transition period to address this challenge. Those unable to verify their transaction history may be taxed based on their total holdings rather than profits.

On the regulatory side, Hetmantsev noted that the NSSMC is currently unable to oversee the industry due to limited institutional capacity. As a temporary solution, the National Bank of Ukraine may step in to monitor the sector until the NSSMC is equipped to take over.

“We still believe that, at this stage, the National Bank should take control of regulatory matters,” Hetmantsev said.

Legislative Timeline and International Involvement

The bill is set for its first parliamentary reading in early 2025, with lawmakers aiming for full passage by summer. The Ukrainian government has worked closely with the International Monetary Fund (IMF) and other global financial organizations to shape its approach.

At the end of 2024, Hetmantsev reaffirmed that the legislation remains on track, with Yuriy Boyko, head of the NSSMC, stating that a mid-2025 rollout is a “very likely scenario.” As Ukraine moves toward full legalization, the government seeks to balance innovation with financial oversight, ensuring a structured environment for crypto transactions.

Ukraine’s push for clear crypto regulations aligns with a broader global trend toward structured digital asset oversight. As reported by CNF, the Trump administration in the United States has also taken significant steps toward refining crypto regulations. During a recent press conference at Capitol Hill, U.S. Senators Tim Scott and John Boozman, alongside David Sacks, the AI and crypto czar, outlined their strategy to enhance the regulatory landscape for digital assets.

A key initiative includes the formation of a bicameral working group, bringing together members from the Senate Banking Committee and the House Agriculture Committee. This group aims to drive forward comprehensive regulations, with a particular focus on stablecoins.