National Bank of Ukraine Opposes Crypto Legalization Bill Over Sovereignty Concerns

The National Bank of Ukraine (NBU) has expressed its disapproval of Bill No. 10225-d, which aims to regulate the country's crypto market, raising concerns about the potential risks to the financial system and monetary sovereignty.

Initially involved in drafting the bill, the NBU has now stated that the proposed regulations could allow foreign tokens to operate in Ukraine without adequate oversight, which the bank fears could undermine its control over the local economy.

Concerns Raised by the NBU

• The NBU is particularly worried that foreign tokens could function as electronic money in Ukraine, posing a threat to monetary sovereignty and financial stability.
• Another major concern is the bill's vague provisions regarding the licensing of crypto trading platforms, which the NBU argues could lead to monopolization and corruption.
• The bank has called for clearer guidelines on the admission of foreign tokens and the selection of operators to ensure regulatory parity with domestic assets.

Despite the NBU's objections, the Verkhovna Rada Committee on Finance, Tax and Customs Policy has recommended the bill for a second reading, with a final vote expected later this month. If passed, the legislation would take effect on July 1, 2027, and introduce a tax framework for virtual asset transactions.

Currently, Ukraine has a crypto law in place since 2022, but it remains unenforced due to the absence of accompanying tax regulations. Bill 10225-d is intended to fill this gap and align Ukraine's crypto framework with European standards.