Ukrainian lawmakers have passed a draft law on its first reading that would legalize and tax cryptocurrencies. The bill, supported by 246 out of 321 deputies, aims to create a regulated “Virtual Asset Markets” framework.
Key provisions include a standard 18% tax on profits from crypto transactions, with a reduced 5% rate for investors who convert their crypto to fiat in the first year after the law’s adoption.
Notably, the exchange of one virtual asset for another will not be taxed. The legislation assigns the National Bank of Ukraine as the primary supervisor, with a second regulator to be determined later that will have broad powers to conduct inspections and investigations.
This move is a significant step for Ukraine, which has a high rate of crypto adoption and could potentially recover up to $10 billion in lost revenue due to a lack of regulation.
While the law still needs a second reading and may undergo changes, it marks the country’s renewed effort to regulate the crypto market after a previous attempt was postponed by the Russian invasion in 2022.
Image Credit: Pixabay
Keep in mind that we may receive commissions when you click our links and make purchases. However, this does not impact our reviews and comparisons. We try our best to keep things fair and balanced, in order to help you make the best choice for you.
