The monetary authority of Ukraine is open to legalizing crypto assets, if that doesn’t cross certain “red lines,” its governor has emphasized in statements for Ukrainian media. Using the likes of Bitcoin for payments, for example, is out of the question for the central bank’s top executive. Cryptocurrency transactions should not interfere with martial law controls, either. NBU draws lines in the sand for crypto in Ukraine The National Bank of Ukraine (NBU) is ready to discuss crypto legalization, its head has clearly indicated. Chairman Andriy Pyshnyy shared his views on the matter in a broad interview with RBC-Ukraine, touching on a wide range of topics, from the effects of war on the country’s economy to getting rid of the Russian word “kopeck” on Ukrainian coins. Cryptocurrencies cannot be legal tender in Ukraine and must not impede the NBU’s policies, the governor stressed in his conversation with the business news outlet, also quoted by Ukrinform, the country’s official news agency. Pyshnyy stated: “It is important for us that our ‘red lines’ are clearly followed. Virtual assets cannot be a means of payment and cannot in any way undermine the effectiveness of our monetary instruments.” The central bank should not lose any powers or capabilities as a result, the official insisted. In his view, crypto shouldn’t be a tool to circumvent restrictions imposed under martial law to balance the monetary market and ensure sufficient gold and foreign currency reserves. Pyshnyy highlighted the importance of empowering regulators to deal with any violations of consumer rights in the digital currency market as well as the need to ensure competent regulation and provide technical solutions for effective supervision. He underscored that Ukraine’s legislation must implement the standards adopted by the Financial Action Task Force (FATF) on money laundering and the new European rules within the framework of the EU’s Markets in Crypto Assets ( MiCA ) law, adding: “The legalization of virtual assets should not undermine our effectiveness in ensuring financial monitoring.” Governor sees chance to bring crypto out of the shadows Andriy Pyshnyy is convinced that legalization will be “an ideal solution” if it helps to “de-shadow” the crypto market. He says this would also positively influence the assessment of Ukraine’s financial sector by Kyiv’s allies in the West. The banker pondered: “Perhaps we need to have a broader discussion – what exactly will encourage bringing those virtual assets that already exist and are owned today out of the shadows.” The Ukrainian government has been taking steps to regulate the circulation of cryptocurrencies which has increased over the past few years amid fiat restrictions related to the war with Russia. It’s also preparing to establish a strategic Bitcoin reserve, as Cryptopolitan reported in May. Draft legislation allowing the NBU to hold cryptocurrencies was submitted by a group of lawmakers in June. It seeks to authorize adding digital coins to Ukraine’s foreign exchange reserves. The sponsors say this won’t clash with its international commitments. Members of the Verkhovna Rada, Ukraine’s legislature, are going to review a bill designed to legalize the digital assets market as early as August, according to Danylo Hetmantsev, chair of the Rada committee on finance, taxation and customs policy. The delay in adopting comprehensive rules for the industry has been a source of contention between the executive power and the parliamentary opposition in Kyiv. Earlier this year, the administration of President Volodymyr Zelenskyy was accused of blocking the consideration of the draft law. Meanwhile, some Ukrainian cryptocurrency firms have decided to leave the country, citing war-time restrictions and regulatory uncertainty as their main reasons. This past spring, payment card issuer Weld Money announced it’s wrapping up operations. Crypto exchange Kuna also said it’s ending trading in Ukraine. KEY Difference Wire helps crypto brands break through and dominate headlines fast
