The National Bank of Ukraine (NBU) has declined to support a new draft bill regulating the country’s crypto market, even after a key parliamentary committee cleared it for a final vote. The NBU expressed concerns that the proposed legislation could undermine Ukraine’s monetary sovereignty and financial stability, especially regarding the entry of foreign tokens not subject to local oversight.
NBU raises transparency and regulatory concerns
In a public statement issued on November 4, the NBU highlighted issues with Draft Law No. 10225-d, which outlines the circulation and regulation of virtual assets in Ukraine. The bill, prepared by the Verkhovna Rada Committee on Finance, Tax, and Customs Policy, advanced after a committee vote but failed to address key compromises discussed during earlier drafting stages.
Officials at the central bank reported that they only received the final text late on the eve of the committee’s session, leaving inadequate time for review or debate. Deputy Governor Oleksii Shaban outlined the bank’s objections during the meeting, but the NBU found the process insufficiently transparent and lacking in opportunities for open discussion.
Ukraine legalized a general framework for virtual assets back in 2022. The latest bill is intended to establish comprehensive national rules modeled on the European Union’s Markets in Crypto-Assets (MiCA) regulation and influenced by International Monetary Fund (IMF) recommendations. The NBU expressed its overall support for the EU-aligned regulatory direction but maintains reservations about the draft’s current form.
Mini dictionary: The National Bank of Ukraine (NBU) is the central financial authority responsible for formulating and implementing monetary policy, regulating currency circulation, and overseeing financial stability in Ukraine.
Three key risks outlined by the NBU
The central bank’s opposition to the crypto bill centers on three principal risks. Firstly, the draft law would allow foreign-issued tokens, which at times function as electronic money, to operate in Ukraine even if they lack comparable oversight in their home countries. The NBU warned that this situation could endanger the country’s monetary policy transmission, threaten payment infrastructure, and expose the financial system to vulnerabilities.
The bank is seeking to secure for itself the same authority over foreign tokens as it currently has for domestically issued digital assets, including the ability to review and, if needed, restrict their circulation in Ukraine.
A second point of contention is the risk of regulatory arbitrage. The NBU cautioned that simplified admissions for foreign virtual assets should not allow those assets to bypass the existing rules that Ukrainian entities must follow. Disparities in supervision, they stated, could foster segments of the virtual asset market that operate beyond sufficient regulatory control.
Lastly, the central bank identified possible risks of monopolization and corruption tied to licensing trading platform operators. The NBU had initially objected to placing a strict numerical limit on licensed operators but later agreed to a preliminary cap of three institutions selected through a competitive process. However, the final draft removed a clear five-year cap on operator numbers, giving the National Securities and Stock Market Commission broader discretion and, according to the NBU, reducing protections against market monopolies.
| Issue | NBU Concern | Current Draft Approach |
|---|---|---|
| Foreign tokens oversight | Threats to monetary sovereignty, lack of control | No mandatory NBU review or restriction mechanism |
| Regulatory parity | Risk of uneven rules between foreign and domestic assets | Simplified admission, potential for regulatory arbitrage |
| Licensing cap | Monopolization, corruption risks | No fixed five-year limit, number at commission’s discretion |
Next steps for the crypto bill
The parliamentary committee’s recommendation does not yet make the law binding. The full Verkhovna Rada is expected to vote on the bill later in November. If passed in its current form, the new regulatory framework would come into effect on July 1, 2027, with oversight responsibilities divided between the NBU and the National Securities and Stock Market Commission.
Under the proposal, personal income derived from virtual asset trading would be subject to Ukraine’s standard personal income tax. However, a reduced 5% tax rate would be applied through 2028 for assets acquired before the law’s enactment date. Swaps between cryptocurrencies would remain untaxed, and such transactions would not incur value-added tax.
The ongoing debate reflects Ukraine’s broader search for an effective balance between integrating digital assets into official finance and preserving financial stability. Last year, lawmakers introduced a separate legislative initiative to allow the NBU to hold virtual assets, including bitcoin, within its foreign exchange and gold reserves—though the bank would have full discretion over such holdings.
“The development of the virtual asset market and the protection of monetary and financial stability are not mutually exclusive,” the National Bank of Ukraine emphasized, calling on parliament to improve the bill in collaboration with all stakeholders and reiterating its readiness for further dialogue.
The outcome will depend on whether lawmakers amend contentious provisions about foreign token admission and platform licensing or proceed with the committee’s version, potentially leaving the central bank sidelined in the evolving regulatory framework.
