The National Bank did not support the bill on the circulation of virtual assets

The National Bank of Ukraine has released its official position on Bill No. 10225-d, which provides for the regulation of virtual asset transactions. The regulator stated that it does not support the bill in its current form.

"The National Bank of Ukraine supports the regulation of the virtual asset market in Ukraine based on the European MiCA approach, international standards, and IMF recommendations. Our fundamental position is that the development of this market must not pose a threat to Ukraine’s monetary sovereignty, price and financial stability, or economic security,” the document states.

It is noted that the NBU actively participated in the drafting of Bill No. 10225-d. Although certain compromises were reached, the drafting process was not sufficiently transparent.

Furthermore, the final version of the bill, recommended by the relevant Verkhovna Rada committee for the second reading, does not take into account a number of fundamental agreements.

The National Bank publicly highlights three key risks. The first is the uncontrolled entry of foreign tokens.

The bill allows foreign tokens—which can effectively function as electronic money but are not subject to appropriate regulation and supervision in their countries of issuance—to enter the Ukrainian market.

The NBU’s position: The National Bank must have the authority to assess the risks posed by such foreign tokens and, if necessary, restrict their circulation in Ukraine—similar to the authority it has over tokens issued in Ukraine.

The second risk is regulatory gaps and inconsistent requirements.

Simplified admission of foreign virtual assets should not allow for circumvention of the requirements established for similar Ukrainian assets.

The NBU’s position: the rules for admitting foreign assets must prevent circumvention of regulatory requirements and regulatory arbitrage and ensure the protection of monetary sovereignty and financial stability.

The third point concerns the risks of monopolization and corruption during the authorization of market participants.

The NBU’s initial position called for no quantitative restrictions on trading platform operators, provided they met the established requirements.

As a compromise, the National Bank agreed to a proposal by the National Securities and Stock Market Commission to limit the number of operators in the first phase to three legal entities selected through a competitive bidding process.

However, as stated by the National Bank, the final version of the bill does not specify a precise number of operators that will be allowed to operate during the first five years.

“This decision is entirely at the discretion of the NSSMC,” the National Bank noted.

The failure to take these fundamental comments into account makes it impossible to support Bill No. 10225-d in its current form, the NBU concluded.

This was reported by the NBU’s press service.

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