Independent media LigaMedia reports that Ukraine's incoming Deputy Minister of Digital Transformation, Alexander Bornyakov, recently announced the government's plans to legalize cryptocurrency.
Bornyakov emphasized that while cryptocurrency usage isn't currently prohibited in Ukraine, establishing its legal status would enable the government to benefit from related taxation.
"Cryptocurrency businesses should emerge from the gray economy and start paying taxes," he stated. Beyond existing mining operations, Bornyakov believes Ukraine could generate revenue through cryptocurrency exchanges.
Ukraine's Crypto Regulatory Roadmap
In October 2022, Ukraine's Ministry of Economic Development and Trade launched a state policy to classify cryptocurrency-related activities. The ministry claimed this initiative aimed to:
- Create clear conditions for virtual asset transactions
- Introduce a regulatory framework for cryptocurrency adoption
The policy is being implemented in two phases, slated for completion in 2025.
Key Legal Definitions Established
The ministry formalized definitions for critical terms including:
| Term | Definition Scope |
|---|---|
| Virtual currency | Cryptocurrency |
| Virtual assets | Digital representations of value |
| ICO/ITO | Token-based fundraising |
| Crypto mining | Blockchain validation process |
| Smart contracts | Self-executing agreements |
| Tokens | Digital utility or security units |
Proposed Tax Structure
In September 2022, Ukraine's parliament proposed a draft bill recommending:
- 5% tax on individuals/entities holding cryptocurrency
- 18% corporate tax on profits from crypto-related activities
👉 How Ukraine's crypto legalization compares to global standards
Implementation Challenges
Experts identify two primary hurdles:
- Tracking decentralized transactions
- Ensuring compliance from international exchanges
Economic Impact Projections
Analysts suggest legalization could:
- Generate $400M+ annual tax revenue
- Attract $2B in crypto investments by 2027
- Create 30,000+ new tech jobs
FAQ Section
Q: When will crypto become fully legal in Ukraine?
A: The regulatory framework is expected by late 2025.
Q: How will taxes be collected from foreign exchanges?
A: The government plans bilateral agreements with major trading platforms.
Q: Will mining remain tax-exempt?
A: No—mining operations will face 18% corporate tax under new proposals.
👉 Complete guide to Ukraine's emerging crypto economy
Disclaimer: This content provides market information only. All views expressed constitute opinions, not investment advice. Investors should conduct independent research before engaging in transactions. Neither the author nor associated entities assume responsibility for direct/indirect losses arising from investment decisions.
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