TL;DR
Get hardware and tech essentials delivered free with Prime
- Fast, free delivery on millions of items
- Prime Video, Amazon Music and more included
- Member-only deals all year
The National Bank of Ukraine says it cannot support crypto bill No. 10225-d in its current form and wants revisions before lawmakers proceed. It cites risks from foreign-issued tokens and concerns that the bill gives the securities regulator broad discretion over how many trading platforms can operate.
Ukraine’s National Bank has refused to support draft law No. 10225-d, which would establish rules for cryptocurrency trading, saying the bill needs changes to protect monetary sovereignty and financial stability. The NBU wants lawmakers to address its objections before proceeding toward a final vote.
The central bank said the draft does not resolve concerns raised in discussions involving lawmakers, regulators and crypto industry representatives. It supports regulating digital assets in line with the European Union’s MiCA framework and International Monetary Fund recommendations, but said the current version lacks safeguards it considers necessary.
The NBU said it received the final draft late Tuesday, giving it limited time to review revisions before a parliamentary committee approved the bill for a second reading. It also described the drafting process as “not sufficiently transparent.” The report did not identify the committee or give a date for the next parliamentary step.
One central concern is that foreign-issued tokens could be used in Ukraine even if their issuers are not supervised in their home jurisdictions. The bank said some tokens could function as electronic money, potentially weakening monetary control and financial stability. It wants authority to assess foreign tokens and restrict their use when needed, as it can for assets issued in Ukraine.
The NBU also objected to the bill’s approach to market access. It said it had agreed to a compromise that would initially permit three crypto trading platform operators, selected competitively. But the final draft leaves the number of operators allowed during the first five years to the discretion of the securities regulator, the NSSMC. The bank warned that this could lead to market concentration or corruption.
Safeguards at the Center of the Dispute
The dispute could affect how Ukraine permits crypto trading while maintaining control over money and financial services. If foreign tokens can operate as electronic money without oversight comparable to that applied to domestic assets, the NBU argues, they could evade rules and complicate monetary policy. These are the central bank’s stated concerns; the report does not establish that such effects have occurred.
The disagreement over platform numbers also concerns how access to a newly regulated market would be allocated. The NBU’s proposed limit of three operators would constrain entry at the outset, while the bill’s wording would leave the decision to the securities regulator. The bank’s warning about concentration and corruption reflects a risk it sees in that discretion, not a finding that misconduct has taken place.
For crypto businesses and users, the bill’s final form could determine who may offer services, which tokens may be used, and how transactions are taxed. The objections add uncertainty to the legal framework, since lawmakers may revise the draft, proceed without the NBU’s support, or delay action.
Products Worth Considering
Trezor Safe 5 Crypto Hardware Wallet with Color Touchscreen, Black Graphite
Trezor Safe 7 Crypto Hardware Wallet
Ledger Flex + Folio Crypto Hardware Wallet
As an affiliate, we earn on qualifying purchases.
Ukraine’s Earlier Crypto Law
Ukraine has previously attempted to create a legal framework for digital assets. President Volodymyr Zelenskyy signed a virtual assets law in March 2022 after rejecting an earlier version, but the law did not take effect because implementation depended on changes to the tax code.
The current proposal would place the NSSMC in the lead regulatory role for the crypto market. Its tax provisions have also changed: an earlier draft proposed the standard 18% personal income tax plus a 5% military levy on crypto gains. The updated bill instead provides a 5% transitional rate for existing crypto assets through the end of 2028 and explicitly exempts crypto-to-crypto trades from tax, according to the report.
Separate proposals have discussed allowing the central bank to hold cryptocurrency in its reserves. In June, authorities moved $8.3 million in seized crypto, amid discussion of a possible strategic reserve. The reported transfer does not establish that Ukraine has adopted a crypto reserve policy.
Open Questions on the Bill
The reported account does not establish whether lawmakers will amend the bill to meet the NBU’s requests, or whether the bank’s opposition will delay further consideration. It also does not give a date for a second-reading vote or describe the final wording of every disputed provision.
Details remain unclear about how the NSSMC would decide the permitted number of platforms, what criteria it would use to assess foreign tokens, and how any restrictions would be applied. The reported tax changes are provisions of the draft; their final status depends on the bill’s passage and any further revisions.
Next Steps in Parliament
The immediate next step is for lawmakers to decide whether to revise draft law No. 10225-d before its second reading. The NBU has called for changes, but the report does not say whether legislators or the securities regulator have agreed to them.
Further parliamentary action should clarify whether the proposed rules on foreign tokens, platform licensing and taxation change. Until the bill advances and its final provisions are established, Ukraine’s framework for legal crypto trading and taxation remains unsettled.
Key Questions
Why does Ukraine’s central bank oppose the crypto bill?
The NBU says the current draft lacks safeguards and could let foreign-issued tokens function as electronic money without adequate oversight. It also objects to leaving the number of trading platforms to the securities regulator’s discretion.
What is draft law No. 10225-d?
It is a Ukrainian proposal to legalize and regulate cryptocurrency activity. The draft would make the NSSMC the main regulator of the crypto market, according to the report.
Has the bill become law?
No. The reported development is that a parliamentary committee approved the draft for a second reading. The source does not report that Parliament has passed it or that it has taken effect.
What tax rules does the current draft propose?
The updated draft sets a 5% transitional tax rate for existing crypto assets through the end of 2028 and exempts crypto-to-crypto trades from tax. Those provisions could change as lawmakers consider the bill.
What happens next?
Lawmakers may revise the draft before its second reading, but a vote date and the NBU’s requested changes have not been reported. The bill’s final status remains unsettled.
Source: coindesk.com
