Ukraine to Draft Cryptocurrency Legislation by October

A draft law on virtual assets, delineating the powers of regulators, is set to be prepared by October 2025. Its foundation will be based on the provisions of the European MiCA regulation, as reported by Interfax-Ukraine, citing the first deputy head of the NBU, Kateryna Rozhkova.

International partners will provide technical assistance in developing the document.

Rozhkova noted that in EU countries, oversight of the cryptocurrency market is conducted jointly. For instance, central banks focus on tokens backed by currencies or other monetary instruments, while securities market regulators and the Ministry of Finance oversee all others.

In Ukraine, the powers of agencies in the digital currency sector will also be delineated. However, the Ministry of Digital Transformation will not be among the regulators, due to the position of the IMF, the official clarified.

Following the adoption of the legislation, the NBU will begin developing internal regulatory acts to streamline its oversight of the industry.

“It is important to maintain macro-financial stability, so virtual assets should not replace money. We must ensure the transparency of operators, considering financial monitoring requirements, protect the financial system from capital outflow, and safeguard the population,” Rozhkova emphasized.

According to her, the decentralized nature of crypto wallets poses challenges for regulation and control, as well as raises issues of legalization risks and tax evasion. Rozhkova referred to the example of the online service BitCapital, which the NBU accused of implementing an illegal crypto-lending scheme.

In March, the model for distributing responsibilities among the main regulators of the digital asset market in Ukraine was presented at a meeting of the Financial Stability Council.