National Bank of Ukraine opposes crypto legalization bill over sovereignty concerns

Ukraine’s crypto legalization effort has hit a familiar obstacle: the central bank. The National Bank of Ukraine (NBU) has declined to back Bill No. 10225-d in its current form, warning that the proposed rules could put the country’s financial system at risk.

The timing is awkward. The NBU helped draft the bill. Now it is publicly withholding support.

What the central bank is worried about

The NBU’s core objection centers on foreign tokens. The bank fears they could function as electronic money inside Ukraine without enough regulatory oversight.

Electronic money is digital value people use to pay for things, like a balance in a payment app. If tokens issued abroad start filling that role at scale, a central bank loses some grip on the money circulating in its own economy. The NBU frames this as a threat to Ukraine’s monetary sovereignty and economic security.

The second concern is licensing. The bill leaves the number of crypto trading platforms up to the discretion of the National Securities and Stock Market Commission (NSSMC), the country’s securities regulator.

The NBU argues that kind of open-ended discretion invites monopolization and corruption. The bank also flagged the risk of regulatory arbitrage that favors foreign participants.

According to the NBU, the latest draft does not resolve issues raised during discussions with lawmakers, regulators, and crypto industry representatives. The bank wants clearer guidelines on how foreign tokens are admitted to the market and how operators are selected.

A bill that keeps moving anyway

The central bank’s objection has not stopped parliament. The Verkhovna Rada Committee on Finance, Tax and Customs Policy has recommended the bill for a second reading.

The legislation already cleared its first reading on September 3, 2025, with 246 votes.

The tax provisions are where most traders will look first. Profits from virtual asset transactions would face an 18% personal income tax plus a 5% military levy.

Not every trade triggers a bill, though. Swaps between virtual assets would remain tax-exempt, so rotating from one token into another would not count as a taxable event under the proposal.

There is also a transition sweetener. A preferential 5% rate is proposed for profits on holdings acquired before 2027, available through 2028.

Small players get a carve-out too. Profits up to one minimum monthly wage would be exempt.

If the bill passes its remaining readings, it is set to take effect on July 1, 2027.

Background: a law waiting on its tax rules

Ukraine has technically had a crypto law since 2022. The Virtual Assets Law, No. 2074-IX, was passed but has remained unenforced because it was waiting on accompanying tax legislation.

Bill 10225-d is meant to supply that missing piece.

The research behind the bill points to alignment with broader European standards, including principles from MiCA, the European Union’s Markets in Crypto-Assets regulation.