Nov 5, 2026, 7:50 a.m. EST
2 min read
Summary
- Ukraine’s central bank refuses to endorse the current cryptocurrency legalization bill and asks legislators to modify it ahead of the final vote.
- The NBU cautions that foreign digital assets functioning as electronic money could compromise monetary sovereignty and allow issuers to bypass regulations governing domestic Ukrainian instruments.
- It points out that the legislation leaves the total count of digital asset trading venues up to the securities authority’s judgment, creating dangers of monopolistic practices and graft.
The National Bank of Ukraine (NBU) has declined to back a fresh legislative proposal aimed at legalizing and overseeing digital assets, cautioning that the suggested framework could jeopardize the nation’s financial stability.
The National Bank of Ukraine (NBU) stated that draft legislation No. 10225-d fails to resolve critical issues raised during consultations involving politicians, watchdogs, and participants in the digital asset sector.
The institution noted it backs digital asset rules aligned with the European Union’s MiCA framework and International Monetary Fund guidelines, but asserted that the existing text misses crucial protective measures.
The agency mentioned that it obtained the final version of the proposal late Tuesday, affording minimal time to examine modifications prior to a parliamentary committee advancing it for a second reading.
The institution remarked that the drafting procedure lacked adequate transparency.
“The development of this market should not create threats to monetary sovereignty, price and financial stability, and economic security of Ukraine,” the NBU stated.
A primary worry is that foreign-created tokens might enter Ukraine even without regulatory oversight in their countries of origin. Certain instruments could function as electronic currency, which the NBU warned might endanger monetary sovereignty and overall financial stability.
The NBU seeks the authority to evaluate such tokens and place limits on their usage whenever necessary, similar to its oversight of domestic Ukrainian tokens. It further cautioned that foreign crypto assets might evade standards imposed on comparable local instruments.
An additional apprehension involves market entry. The NBU mentioned it previously consented to a compromise that would initially restrict the sector to three digital asset trading platform operators chosen via a competitive procedure.
The final proposal leaves the count of permitted operators during the initial five-year period to the discretion of Ukraine’s securities watchdog, elevating anxieties regarding market concentration and corruption.
Based on the bill, the NSSMC would act as the principal regulator for Ukraine’s digital asset sector. The original draft taxed crypto gains at the standard 18% personal income tax along with a 5% military charge. Nonetheless, the revised text establishes a reduced 5% transitional tax percentage for pre-existing crypto assets up until the end of 2028, while explicitly shielding crypto-to-crypto transactions from taxation.
Ukraine has previously attempted to legalize digital assets. President Volodymyr Zelenskyy endorsed a virtual assets statute in March 2022 following his rejection of an earlier draft, though it never went into effect because implementation relied on amendments to the tax code.
Legislators have additionally put forward a proposal permitting the central bank to maintain crypto within its reserves, and officials transferred $8.3 million in confiscated crypto in June amid discussions concerning a strategic reserve.
The NBU has urged additional revisions prior to lawmakers moving forward, casting further doubt over Ukraine’s initiatives to build a regulatory framework for crypto transactions and taxation.
AI Disclaimer: Parts of this article were generated with the assistance from AI tools and reviewed by our editorial team to ensure accuracy and adherence to our standards. For more information, see CoinDesk’s full AI Policy.
Originally published at https://www.coindesk.com/business/2026/11/05/ukraine-s-central-bank-opposes-crypto-bill-citing-monetary-sovereignty-concerns.
