The Ukrainian parliament has approved the first draft of a bill to legalize and tax Bitcoin and other virtual assets, aimed at creating a regulated framework.
Support for the Bill
This development aims to enhance budget receipts through regulated crypto investments. Advocates believe it will help attract international investments.
Legal Clarity for Crypto Investors
Clear taxation on cryptocurrencies is expected to encourage both institutional and retail participation. The bill proposes a 23% tax rate on crypto profits, with a lower rate for early fiat conversion to promote compliance.
Impact on Ukraine's Economy
The bill positions Ukraine among countries that actively regulate cryptocurrency. Similar moves in El Salvador have shown a positive market reaction. Clear regulations may lead to increased levels of crypto ownership and improved compliance in the sector.
The bill on the legalization and taxation of Bitcoin may provide Ukraine with significant economic opportunities and increase its investment attractiveness to foreign investors.
