Ukraine plans to legalize cryptocurrencies by the first quarter of 2025, with a draft bill being prepared by a parliamentary working group in collaboration with the National Bank and the International Monetary Fund (IMF), Ukrainska Pravda reported Thursday.

Danylo Hetmantsev, head of the Ukrainian Parliament's Committee on Finance, Tax, and Customs Policy, confirmed that the draft law is nearly ready for its first reading. He expressed optimism that the legislation will be approved by early 2025.

"We aim to pass this law and legalize cryptocurrency in the first quarter," he reportedly said. 

The bill not only paves the way for cryptocurrency legalization but also establishes that digital assets will be subject to taxation. Similar to securities, profits will be taxed when cryptocurrencies are converted into fiat currency.

"In consultations with European experts and the IMF, we are taking a very cautious approach to using cryptocurrencies for tax exemptions, as it could potentially facilitate tax evasion in traditional markets," Hetmantsev said.

In November 2023, Ukraine's parliament received a draft law outlining the taxation of virtual asset transactions, marking a critical step toward the full legalization of cryptocurrencies in the country. The upcoming legislation aims to establish clear regulatory guidelines for exchanges, traders and investors, creating a more stable and secure framework for Ukraine's digital asset sector.

Ukrainian public officials have a notable history of cryptocurrency ownership. In 2021, various civil servants reported owning holdings of 46,351 bitcoin, valued at $2.7 billion at the time. Notably, the 19-year-old son of two national parliament members—himself a local politician—reported owning $24.6 million worth of monero.

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