Ukraine’s central bank has formally rejected the latest version of draft law No. 10225‑d, which aims to regulate cryptocurrency trading and taxation. In a statement released on November 4, the National Bank of Ukraine (NBU) said the bill contains three major flaws – inadequate oversight of foreign tokens, unequal treatment of domestic and overseas issuers, and a licensing regime that could foster monopoly and corruption. The regulator urged parliament to amend the text before it proceeds to a second reading.

Foreign Tokens Seen as Threat to Monetary Sovereignty

According to the NBU, the draft permits foreign‑issued tokens that function as electronic money to enter Ukraine’s payment system without comparable supervision in their home jurisdictions. The bank argued that such assets could undermine monetary sovereignty, distort monetary policy transmission and expose the national payment infrastructure to risk. The regulator proposes that the central bank be granted authority to assess foreign tokens before they are admitted to the market and to restrict their circulation when necessary, mirroring the powers it would have over domestic tokens.

Unequal Rules for Domestic and Overseas Issuers

The NBU also highlighted a disparity in the admission procedures for domestic versus foreign virtual asset service providers. The draft would allow simplified entry for overseas issuers, potentially letting them bypass requirements imposed on Ukrainian companies. The central bank warned that this regulatory arbitrage could leave portions of the market outside effective supervision and erode the level playing field. It called for consistent admission standards that apply regardless of an asset’s origin.

Exchange Licensing Raises Monopoly and Corruption Concerns

Another point of contention is the bill’s approach to authorising cryptocurrency trading platforms. Earlier negotiations had settled on an unlimited‑operator model, provided firms meet regulatory criteria. However, a compromise introduced by the National Securities and Stock Market Commission (NSSMC) would initially limit licences to three entities selected competitively. The latest draft removes that limit and leaves the number of authorised operators for the first five years to the NSSMC’s discretion. The NBU argued that this open‑ended discretion lacks safeguards against anticompetitive behaviour and could open the process to corruption. It urged the inclusion of transparent, objective criteria for licensing decisions.

What to Watch Next

Parliament’s finance committee has recommended approval of the bill in its current form, while the NBU continues to press for revisions. The next steps will involve a parliamentary vote on the second reading, after which further amendments could be negotiated. Observers will be watching whether the legislature adopts the NBU’s suggested safeguards on foreign token supervision and exchange licensing, and how closely Ukraine’s eventual framework aligns with the EU’s Markets in Crypto‑Assets (MiCA) regulation.