Ukraine’s Central Bank Opposes Crypto Legalization Bill

crypto legalization bill — Ukraine’s central bank has formally opposed a draft law to legalize cryptocurrencies, citing threats to monetary sovereignty and demanding significant revisions before a final parliamentary vote.

The National Bank of Ukraine (NBU) stated that the current version of the bill, which aims to establish a legal framework for virtual assets, does not adequately address the risks of crypto assets replacing the national currency, the hryvnia. The bank’s primary concern is that widespread adoption of cryptocurrencies could undermine its ability to conduct monetary policy and ensure financial stability.

The NBU has submitted its official position to the parliamentary committee on digital transformation, which is shepherding the legislation. The central bank insists that the bill must be amended to explicitly prohibit the use of crypto assets as a means of payment within Ukraine, a stance that conflicts with the more permissive approach favored by some lawmakers and industry advocates.

This opposition creates a significant hurdle for the bill, which has already passed a first reading in Ukraine’s parliament, the Verkhovna Rada. The development signals a potential clash between the country’s monetary authority and its legislative branch over the future regulatory landscape for digital assets in Ukraine.