According to the online newspaper “Ukraïns’ka pravda”, the government of Ukraine is considering legalizing crypto within a few months.
The President of the country’s Finance Commission has literally expressed that they are planning an opening towards the crypto sector by Q1 2025.
By doing so, Ukraine would join the list of all those Nations that are adopting Bitcoin and other digital assets to support their economies.
Let’s see all the details below.
Ukraine ready to embrace Bitcoin and crypto in Q1 2025
This morning the well-known online publication “Ukraïns’ka pravda” published an article referring to a possible public acceptance of crypto in Ukraine.
According to reports, the will of the Government of Kiev to legalize Bitcoin and other cryptographic activities by the first quarter of 2025 emerges.
In this regard, Danylo Hetmantsev, president of the Finance Committee, would have intervened during the Ekonomichna Pravda forum.
The political representative clarified that the Parliament’s working group is finalizing a draft law that also includes reforms on crypto.
Here are his exact words regarding the draft:
“I believe that the text, developed in collaboration with the National Bank and the IMF, will be ready after the new year. We aim to approve this law and legalize cryptocurrency in the first quarter of 2025″.
Hetmantsev observed, however, that there will be no tax exemptions for those operating within the crypto industry in Ukraine.
The tassazione will follow the model used for securities, where profits are taxed when an asset is converted into Fiat currency.
The reason for the lack of fiscal openness reflects the risks of facilitating evasion and money laundering within the post-Soviet Republic.
On this front, he intervened again at the Ekonomichna Pravda forum to clarify the government’s maneuvers:
“In consultation with European experts and with the IMF, we are adopting a very cautious approach in the use of cryptocurrencies for tax exemptions, as they could potentially facilitate tax evasion in traditional markets”.
In any case, the adoption of this specific bill marks a great milestone for the legalization of crypto in Ukraine.
The growing global adoption of the crypto sector
The opening of Ukraine’s borders in favor of crypto activities follows the growing worldwide adoption of this sector by various countries.
Among these, El Salvador was the first to legalize Bitcoin as legal tender in September 2021, garnering significant media attention.
Next, it was the turn of the Repubblica Centrafricana in 2022, which, having to deal with its rampant inflation, decided to focus on digital assets.
Both have supported a policy favorable to the use of blockchain and cryptocurrencies, offering their citizens an alternative currency to traditional financial systems.
In the meantime, in the wake of these major changes, other countries like Messico, Portogallo, Spagna, Francia e Emirati Arabi Uniti have initiated a path of adoption.
These have recognized the use of crypto as legitimate for their respective populations, beginning to sense the hidden opportunities of this financial phenomenon.
In Europe, countries like Germany, Netherlands, Poland, and United Kingdom have promoted technological innovation by adopting a more defensive approach, working on regulation to protect investors without missing the train.
Japan and Switzerland have also made great strides forward. For example, cities like Lugano that officially accept Bitcoin as a form of payment.
In the United States, although Bitcoin does not have legal tender status, it has already been widely recognized as a valid payment option in many cities, including Miami and New York.
Furthermore, after the recent victory of Donald Trump in the presidential elections, it is expected that the USA will start to create their own strategic reserve of Bitcoin.
On the horizon, we also see countries like Russia and Argentina getting closer to crypto supporters. Recently, Moscow reintroduced the possibility of crypto mining in the country while President Putin acknowledged the undeniable strength of Bitcoin.
In South America, the Argentine President Javier Milei is instead pushing to strengthen his economic stability by investing in the growth of this industry.
How Ukraine’s Entry Could Favor the Appreciation of Bitcoin
The legalization of crypto in Ukraine could trigger the rise in the price of various digital assets, with Bitcoin at the forefront to benefit from it.
Obviously, the cryptocurrency n°1 would certainly see an increase in confidence in Kiev, which would translate into the growth of institutional holdings.
With a more stable and favorable regulatory environment, companies specializing in cryptocurrencies might decide to operate in Ukraine, introducing a lot of capital.
As a result, the price of Bitcoin could find a new pretext to climb the peaks of the most capitalized assets in the world, skyrocketing in value.
Obviously, in this context, the United States will have a very important role, as it is the country with the highest GDP and investment assets in the world.
If Donald Trump abandons the support plan for crypto, the decisions of Ukraine will matter little.
If instead the promises made by the Tycoon during the election campaign are kept, Ukraine’s entry would likely lead to an increase in investments.
After achieving public acceptance by many companies (Tesla, Microsoft, Gucci) in 2021, Bitcoin is now aiming for Government acceptance in 2025.
The crypto are about to write the history of monetary sovereignty, introducing a new way of conceiving money and revolutionizing the global financial landscape.