Summary

  • The National Bank of Ukraine said it opposes crypto bill '10225-d', which is intended to formalize the cryptocurrency industry.
  • The NBU said foreign tokens that are not subject to regulatory oversight could threaten monetary sovereignty and financial stability if they circulate in Ukraine.
  • The NBU said authorities should have the power to restrict the circulation of foreign-issued tokens and also took issue with the proposed cryptocurrency exchange licensing framework, citing risks of market concentration and corruption.

Forecast Trend Report by Period

The National Bank of Ukraine has come out against legislation designed to formalize the country’s cryptocurrency industry.

CoinDesk reported on November 5 that the NBU said its key concerns were not reflected in the final draft of crypto bill 10225-d released that day. In the central bank’s view, the measure lacks adequate safeguards.

A central point of contention is the entry of foreign tokens into the Ukrainian market. The NBU said tokens not subject to proper regulation and oversight could circulate in Ukraine. If those tokens function as electronic money or sidestep rules applied to similar domestic assets, they could threaten monetary sovereignty and financial stability.

The NBU said authorities should be granted the power to assess risks tied to foreign-issued tokens and restrict their circulation when necessary.

The central bank also objected to the licensing framework for cryptocurrency exchanges. It said it had agreed to a compromise that would limit initial exchange operators to three entities. But the final draft leaves the number of operators allowed during the first five years after legalization to the discretion of the National Securities and Stock Market Commission. The NBU said that could lead to market concentration and corruption risks.

The NBU also questioned the transparency of the legislative process. It said it received the final draft only late on the night of November 3 and did not have sufficient time to review it before a parliamentary standing committee recommended advancing it to a second reading.

JOON HYOUNG LEE