Ukraine Now Closer to Legalizing Cryptocurrency
Cryptocurrency is closer to being legal in Ukraine as the country's parliament finished their first reading of a new crypto bill.
Quick overview
- Ukraine's parliament has completed a preliminary reading of a bill to legalize cryptocurrency, passing with 246 votes in favor.
- The proposed legislation includes an 18% tax on crypto and a 5% tax on profits and fiat conversions.
- Despite ongoing conflict with Russia, the Ukrainian government is taking steps toward normalcy by considering this cryptocurrency bill.
- The bill is expected to undergo significant changes before its second reading, and its future may be influenced by peace negotiations.
Ukraine may be ready to make cryptocurrency legal soon, as the parliament just finished the preliminary reading of a bill that would legitimize crypto in the country.
An initial reading of a cryptocurrency bill in the Ukraine parliament was passed with a vote of 31 against and 246 for. This bill would be the first of its kind to introduce cryptocurrency as legal digital assets in the country, and it calls for an 18% taxation rate on crypto. It also taxes crypto profits by 5% and places an initial year tax on fiat conversion of 5%.
The bill will go through its second reading in a few months, but with the initial vote cast on Wednesday, the country just got one important step closer to legalizing digital currency.
Ukraine’s Move Toward Normalcy
The Ukrainian government has been working to create a more normalized environment for its citizens. Despite the ongoing war with Russia, with Russia still making gains on taking over Ukrainian land, the Ukrainian government is making steps toward normalcy.
One of the ways they are doing that is considering a bill that would make cryptocurrency legal for the 37.8 million residents of Ukraine. Russian president Vladimir Putin is in talks to end the war with Ukraine and its leader President Volodymyr Zelensky. The United States is negotiating with the two countries and U.S. President Donald Trump is attempting to broker peace between them.
Even if peace is achieved, Putin has made it clear that he challenges the legitimacy of Zelenksy, and he has said repeatedly that he may require a referendum to determine if Zelensky should remain in power. If such a move is decided, it could throw out much of the work that Ukraine has already down to draft the bill and put it through its initial reading.
The Bill Is Expected to Change
Many of the details of the bill have not been made public. When asked about the specifics of the bill, lawmaker Yaroslav Zhelezniak said that it does not make sense to divulge that information at this time. He said that the bill would likely undergo massive changes before the second reading occurs.
The expectation is that the bill will eventually pass but not in its current state. It may also suffer some setbacks if Russia and Ukraine can agree on a peace deal. The important thing is that the effort to bring cryptocurrency legally into the country is underway and will likely continue.
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