Headline: Ukraine’s central bank pushes back on crypto bill, flags foreign-token, competition and oversight risks The National Bank of Ukraine (NBU) has declined to back the latest draft of Ukraine’s cryptocurrency law, arguing that key provisions in bill No. 10225-d could threaten financial stability, weaken monetary policy control and create opportunities for regulatory capture or market monopolies. In a November 4 statement, the NBU said the draft—now slated for a second parliamentary reading—fails to resolve several concerns raised during talks with lawmakers and industry participants. While the bank supports regulating crypto under the EU’s Markets in Crypto-Assets (MiCA) framework, it wants lawmakers to revise the bill before adoption. Three core objections The NBU identified three main problems in the current draft: - Foreign tokens that act like electronic money: The regulator warns some overseas-issued digital assets could effectively function as e-money while escaping equivalent supervision in their jurisdictions. Letting such tokens circulate unchecked, the NBU says, could undermine Ukraine’s monetary sovereignty, distort transmission of monetary policy and create risks for payment infrastructure. The bank wants the power to assess and, where necessary, restrict foreign tokens before they enter the Ukrainian market—applying safeguards comparable to those for domestic issues. - Unequal treatment of foreign vs. domestic assets: The draft’s streamlined admission paths for foreign issuers risk letting them bypass requirements placed on Ukrainian companies, the NBU argues. That could produce regulatory arbitrage and leave parts of the market outside effective supervision. The central bank favors harmonized admission requirements to ensure a level playing field. - Platform authorization and monopoly risk: The NBU flagged provisions governing authorization of crypto trading platform operators as vulnerable to monopolization or corruption. Initially, the NBU backed allowing an unlimited number of operators who met rules; it had accepted a securities regulator compromise to cap initial authorizations at three entities selected via competition. The latest draft reportedly removes that numeric limit and leaves the count during the first five years to the discretion of the National Securities and Stock Market Commission—an approach the NBU says lacks transparent safeguards against anticompetitive outcomes. Legislative context, tax details and process complaints - The bill passed its first reading in the Verkhovna Rada in September 2025 (246 votes in favor, 31 opposed) and aims to set comprehensive rules for crypto trading, taxation and oversight. The draft would take effect July 1, 2027. - Tax provisions: Earlier proposals from Ukraine’s securities regulator included a proposed 23% tax on individual crypto income (18% personal income tax plus a 5% military levy). The current draft also contains a preferential 5% tax rate for qualifying crypto profits through the end of 2028. - Process concerns: The NBU, which took part in the drafting working group, complained that transparency broke down late in the process. It says it only received the committee-recommended text on November 3—leaving little time to study changes before the November 4 session where Deputy Governor Oleksii Shaban presented the bank’s objections. The central bank said the meeting format prevented detailed review. What happens next Despite the NBU’s objections, the parliamentary finance committee has recommended approving the bill at its second reading. Ukraine’s securities regulator supports moving the law forward, arguing formal regulation will bring existing activity under state supervision and clarify market rules. The NBU is urging parliament to revise the disputed provisions with input from regulators and industry stakeholders before final approval. The dispute sets up a tense negotiation ahead of the second reading: lawmakers must balance the urgency of legal clarity for the crypto sector with the NBU’s warnings about monetary and market risks. Read more AI-generated news on: https://app.chaingpt.org/news