Ukraine's central bank refuses to back the country's crypto bill
Why it matters
Firms eyeing Ukraine's crypto market face a longer wait for clear rules. The central bank also wants power to vet foreign tokens, which could limit what platforms there can list.
Post to XThe short version
Ukraine's central bank will not support a draft law that would make crypto legal and set rules for it unless lawmakers change it first, CoinDesk reported on 5 November. The bank worries foreign digital coins could act like money and weaken control of the national currency. The bill sets a temporary 5% tax rate on crypto people already own.
The National Bank of Ukraine has refused to support draft law No. 10225-d, which would legalise and regulate crypto, CoinDesk reported. The central bank wants the bill revised before parliament's final vote.
What's the complaint? The bank said it got the final text late on Tuesday, shortly before a parliamentary committee approved it for a second reading. It called the drafting process not sufficiently transparent, according to CoinDesk.
Its main worry is foreign tokens. Some could reach Ukraine without being supervised in their home country and behave like electronic money, the bank warned, putting monetary sovereignty and financial stability at risk. It wants the power to assess and restrict them. It backs rules modelled on MiCA, the EU's crypto law, and IMF advice.
Market access is another sticking point. The bank had agreed to a compromise that would start with three trading platforms picked by competition. The final draft instead leaves the number for the first five years to the securities regulator, the NSSMC. The bank says that raises concentration and corruption risks.
On tax, the updated bill sets a 5% transitional rate on existing crypto holdings until the end of 2028 and exempts swaps between crypto assets, CoinDesk said. The first draft proposed 18% income tax plus a 5% military levy.
Where this comes from
- National Bank of Ukraine statement on draft law No. 10225-d · National Bank of Ukraine
- Ukraine's central bank opposes crypto bill, citing monetary sovereignty concerns · CoinDesk
Written with AI from the sources above and checked against them before publishing. Here's how we work. This is news, not financial advice. Spotted a mistake? Tell us.