Ukraine's Central Bank Opposes Current Crypto Bill: Concerns Over Monetary Sovereignty, Calls for Revisions Before Final Review

November 5: The National Bank of Ukraine (NBU) stated it will not support the current version of the draft law on legalization and regulation of crypto assets, and calls on lawmakers to continue revising it before the final vote. The NBU said it supports advancing regulation with reference to the EU's MiCA and IMF recommendations, but believes that draft No. 10225-d still fails to address its key concerns; the final text was only delivered on Tuesday evening, leaving insufficient time for review, and the legislative process lacks "transparency."

The NBU warned that foreign tokens not adequately regulated in their issuance jurisdictions could enter Ukraine, some of which may act as electronic money, threatening monetary sovereignty and financial stability, and could circumvent requirements applicable to domestic assets of the same type. The central bank wants the authority to assess and, if necessary, restrict their use. On market access, the NBU said a compromise had been reached to initially select three crypto trading platform operators through competition, but the final draft leaves the number of admissions for the first five years to the discretion of the securities regulator, raising concerns about monopoly and corruption risks. Under the draft, the National Securities and Stock Market Commission of Ukraine will become the primary regulator, and a 5% transitional tax rate will be set on existing crypto assets until the end of 2028, with crypto-to-crypto transactions explicitly exempt from taxation.