Ukraine’s central bank has refused to support the latest version of the country’s cryptocurrency regulation bill, warning that several provisions could create risks for financial stability, weaken oversight of foreign-issued tokens, and allow excessive discretion in the licensing of crypto trading platforms.
The National Bank of Ukraine, or NBU, said on November 4 that draft law No. 10225-d still does not address several concerns raised during negotiations with lawmakers, regulators, and industry representatives.
The central bank supports introducing a formal crypto framework based on the European Union’s Markets in Crypto-Assets regulation, or MiCA, but wants several parts of the bill revised before parliament moves forward.
Ukraine’s central bank raises concerns over foreign crypto tokens
One of the NBU’s main concerns involves foreign-issued tokens that could function in a way similar to electronic money.
The central bank warned that some of these assets could enter the Ukrainian market without being subject to regulatory standards comparable to those imposed on locally issued products.
According to the NBU, this could create risks for monetary sovereignty, payment infrastructure, and the transmission of monetary policy.
The bank wants greater authority to assess foreign tokens before they are allowed to circulate in Ukraine.
It also wants the ability to restrict certain assets when they create financial or monetary risks.
NBU wants equal rules for foreign and domestic assets
The central bank also criticized the possibility that foreign crypto products could receive more favorable treatment than equivalent Ukrainian assets.
If overseas issuers are allowed to enter the market through simplified procedures while domestic companies face stricter requirements, the NBU argues that this could create an uneven regulatory environment.
That could also encourage regulatory arbitrage, where companies structure their operations abroad to avoid stricter local rules.
The bank wants foreign and domestic virtual assets to face comparable admission and supervision standards.
Its goal is to prevent parts of the crypto market from operating outside effective oversight simply because the issuer is based overseas.
Foreign tokens could affect monetary policy
The NBU’s concerns go beyond consumer protection.
Tokens that behave like electronic money could potentially compete with traditional payment instruments and bank deposits.
If such assets become widely used without adequate supervision, they could affect how effectively the central bank implements monetary policy.
The regulator is therefore seeking stronger powers to monitor and, where necessary, limit the use of foreign-issued tokens that could play a significant role in Ukraine’s payment system.
Crypto exchange licensing raises monopoly concerns
The NBU also objected to provisions governing the authorization of cryptocurrency trading platforms.
According to the central bank, the latest version of the bill could give Ukraine’s National Securities and Stock Market Commission too much discretion over how many trading platform operators receive approval.
The NBU warned that this could create opportunities for market concentration, anticompetitive behavior, or corruption.
Its concern is that access to the regulated crypto market could depend too heavily on decisions made by a single regulator without sufficiently clear limits or transparent criteria.
Earlier compromise would have limited operators to three
The central bank initially supported allowing an unlimited number of crypto trading platforms to operate as long as they met the relevant regulatory requirements.
During negotiations, however, it accepted a compromise proposed by the securities regulator.
That compromise would have initially limited authorization to three legal entities selected through a competitive process.
The arrangement was intended to create a controlled transition while Ukraine introduced its new crypto regulatory framework.
According to the NBU, that compromise was later removed from the draft.
Latest draft gives securities regulator more discretion
The revised version reportedly does not contain the three-operator limit.
Instead, it allows the National Securities and Stock Market Commission to determine how many trading platform operators can be authorized during the first five years.
The NBU argues that this gives the securities regulator too much discretion.
Without clear rules defining how many operators may enter the market and how they are selected, the central bank believes the system could become vulnerable to unfair competition or influence.
It has called for clearer and more transparent licensing rules.
Ukraine has spent years developing crypto regulation
The disagreement comes after several years of work on a comprehensive legal framework for digital assets in Ukraine.
The Verkhovna Rada approved the legislation at its first reading in September 2025.
At that stage, 246 lawmakers voted in favor of the bill, while 31 voted against it.
The proposed framework covers both cryptocurrency taxation and regulatory requirements for virtual asset service providers.
The legislation is intended to move Ukraine’s crypto industry into a formal legal structure rather than leaving a large part of the market operating under unclear rules.
Crypto taxation is also part of the bill
The legislation includes a proposed tax framework for cryptocurrency profits.
Ukraine’s securities regulator had earlier suggested a total tax rate of 23% on individual crypto income.
That would combine an 18% personal income tax with a 5% military levy.
The latest draft also includes a temporary preferential rate.
Under the proposal, qualifying cryptocurrency profits could be taxed at 5% through the end of 2028.
The broader framework is currently expected to take effect on July 1, 2027.
NBU says agreed compromises were left out
The central bank’s criticism is not limited to the substance of the bill.
It also raised concerns about how the final draft was prepared.
The NBU said several compromises reached during negotiations were missing from the version sent forward for parliamentary consideration.
According to the bank, it received the committee-recommended text only late on November 3.
That left officials with limited time to study the changes before a meeting the following day.
Central bank criticizes review process
NBU Deputy Governor Oleksii Shaban presented the regulator’s objections during the November 4 meeting.
However, the central bank said the format of the discussion did not allow enough time for a detailed examination of its concerns.
The NBU described the review process as lacking transparency and said important issues were not properly addressed before the committee moved forward.
Despite those objections, the parliamentary finance committee recommended that lawmakers approve the legislation during its second reading and adopt it in full.
Securities regulator supports moving the bill forward
Ukraine’s National Securities and Stock Market Commission supports advancing the legislation.
The regulator argues that bringing crypto activity into a formal framework would improve oversight and provide clearer rules for exchanges, service providers, and investors.
From that perspective, delaying the legislation could leave existing crypto activity operating without sufficient supervision.
The NBU agrees that crypto regulation is needed.
Its disagreement centers on the design of the framework rather than whether Ukraine should regulate digital assets at all.
MiCA remains the preferred regulatory model
The central bank has said it supports aligning Ukraine’s cryptocurrency rules with the European Union’s MiCA framework.
MiCA establishes common rules covering crypto issuers, trading platforms, stablecoins, and other digital asset services across the EU.
For Ukraine, closer alignment with MiCA could support regulatory consistency and integration with European financial standards.
However, the NBU argues that Ukraine still needs safeguards tailored to its own monetary system and market conditions.
That is particularly important for foreign tokens that could function like digital money.
Monopoly risk could shape Ukraine’s crypto market
The debate over trading platform licenses could have significant consequences for the structure of Ukraine’s crypto industry.
If only a small number of companies receive authorization, those firms could gain substantial control over domestic crypto trading.
That could reduce competition and make it harder for new businesses to enter the market.
On the other hand, allowing too many operators without proper supervision could create additional compliance and enforcement challenges.
The NBU is therefore calling for a more predictable system with clearly defined eligibility rules.
Regulatory arbitrage remains another concern
The central bank is also worried that differences between rules for foreign and domestic crypto products could encourage companies to avoid Ukrainian regulation.
For example, an issuer might structure a token abroad and then offer it inside Ukraine under simplified rules.
If domestic issuers face stricter obligations, that could disadvantage local companies while weakening regulatory oversight.
The NBU wants the final framework to apply comparable safeguards regardless of where a crypto asset is issued.
What happens next?
The bill is being prepared for its second reading in the Verkhovna Rada.
The parliamentary finance committee has recommended that lawmakers approve it.
However, the NBU is asking parliament to revise the disputed provisions before adoption.
The central bank wants lawmakers to restore the compromises previously discussed with regulators and market participants.
Key areas likely to remain under debate include:
- Rules for foreign-issued crypto tokens
- Oversight of electronic-money-like digital assets
- Equal treatment of domestic and foreign issuers
- Licensing rules for crypto trading platforms
- Limits on regulatory discretion
- Safeguards against market monopolization
Ukraine’s crypto framework remains unsettled
Ukraine appears committed to creating a formal regulatory system for cryptocurrency, but disagreements between its major financial regulators show that important details remain unresolved.
The central bank supports regulation and closer alignment with MiCA.
At the same time, it argues that the current bill could weaken monetary safeguards and give the securities regulator too much control over who can operate in the crypto market.
Whether lawmakers revise those provisions before the second reading could determine how competitive and tightly supervised Ukraine’s future crypto market becomes.
For now, the legislation is still moving forward, but the NBU has made clear that it does not support the current version.
