Potential Shift in Ukraine’s Cryptocurrency Market Regulator

The IMF has postponed the deadline for developing updated legislation on the regulation of virtual assets in Ukraine from the end of December 2024 to the end of February 2025. The responsibility for drafting the regulatory document remains with the NBU and the NSSMC.

According to the fund’s statement, the new law is based on international practices, considers economic development goals, and minimizes risks to financial stability.

Meanwhile, the cryptocurrency market regulator in Ukraine may change. A Memorandum of Understanding, expected in January 2025, will regulate coordination mechanisms and information exchange between the NBU and NSSMC.

“The roles and responsibilities for regulation and supervision will be determined in consultations with the Financial Stability Council and the IMF,” the organization reported.

According to Yaroslav Zheleznyak, a member of parliament, given the current issues with the functionality of the NSSMC, the NBU’s chances of becoming the main regulator are increasing. The latter has previously ruled out accepting cryptocurrencies as legal tender.

Following the meeting on the sixth review of Ukraine’s extended financing program, the IMF’s executive board approved the disbursement of the next tranche of approximately $1.1 billion.

The implementation of the law “On Virtual Assets,” approved in 2021, has been delayed until the adoption of taxation on crypto operations.

Under the new bill, Ukraine will forgo tax incentives on bitcoin transactions. The document is expected to be adopted in the first half of 2025.

The task of developing new cryptocurrency regulations is included in Ukraine’s National Revenue Strategy for 2024-2030 and in the €50 billion reform plan.