CoinDesk
Ukraine's central bank has refused to support draft law No. 10225-d in its current form, urging lawmakers to revise the crypto legalization bill before a final vote. The National Bank of Ukraine (NBU) says foreign-issued tokens that act as electronic money could threaten monetary sovereignty, while proposed trading-platform rules risk concentrating the market.
The bank said it received the final version late Tuesday, shortly before a parliamentary committee approved the bill for a second reading. It described the drafting process as insufficiently transparent.
Why it matters
The NBU supports regulation aligned with the European Union's MiCA framework and International Monetary Fund recommendations, but says the bill lacks safeguards. It wants authority to assess and restrict foreign-issued tokens, including those not supervised in their home jurisdictions, as it can with Ukrainian-issued tokens.
The bank said it had agreed to a compromise initially limiting the market to three trading-platform operators selected competitively. The final draft instead leaves the number permitted during the first five years to the securities regulator's discretion, which the NBU says creates risks of monopolization and corruption.
Market impact
The dispute adds uncertainty to Ukraine's effort to establish rules for crypto trading and taxation. The bill makes the National Securities and Stock Market Commission the main crypto regulator and introduces a 5% transitional tax rate for existing crypto assets through 2028. Crypto-to-crypto trades would be exempt from tax.
A previous virtual assets law signed in 2022 never took effect because it depended on tax-code changes. The NBU's objections put the safeguards and market-access provisions of the new bill in focus before the final vote.
Frequently asked questions
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Why does the NBU want authority over foreign-issued tokens?
The bank says some foreign-issued tokens could act as electronic money and threaten monetary sovereignty, including when they are not supervised in their home jurisdictions. It wants power to assess and restrict their use.
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What concerns does the NBU have about crypto trading platforms?
The final draft leaves the number of operators allowed during the first five years to the securities regulator's discretion. The NBU says that could create risks of monopolization and corruption.
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What tax treatment does the bill propose for existing crypto assets?
The bill introduces a 5% transitional tax rate for existing crypto assets through the end of 2028. It also exempts crypto-to-crypto trades from tax.
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Which authority would regulate Ukraine's crypto market under the bill?
The National Securities and Stock Market Commission would be the main regulator of Ukraine's crypto market.
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Why did Ukraine's 2022 virtual assets law not take effect?
The law depended on changes to the tax code and never took effect.
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