The National Bank of Ukraine (NBU) regards cryptocurrencies as virtual assets, not money, because they do not perform “the basic functions of money — settlement and store of value.” This was stated by the regulator’s first deputy head, Ekaterina Rozhkova, according to «Главком».
“Cryptocurrencies are neither monetary funds, nor currencies as such, nor a means of payment, nor electronic money,” she said.
Rozhkova noted that price volatility of many digital currencies creates risks for their holders. She added that widespread use of cryptocurrencies could negatively affect monetary policy due to the emergence of a parallel monetary circulation, not influenced by the NBU.
“The state may lose its monopoly on money creation, and the NBU will not be able to perform its main function — ensuring Ukraine’s monetary stability,” Rozhkova said.
She also stressed that the transfer of part of deposits into virtual assets threatens the financial stability of the banking system.
At the same time, Rozhkova said that the NBU is not opposed to cryptocurrencies, but their use requires clear regulation:
“In particular, there must be a clear and unequivocal restriction on exchanging virtual assets for other property, works and services. It is necessary to provide for the National Bank to have the possibility, in the event of crisis phenomena in the economy, to introduce protective measures.”
The NBU believes that digital assets should be exchanged exclusively for other similar assets, hryvnia, and in certain cases established by the National Bank — for other currency values.
The NBU stated that the legalization of cryptocurrencies would provide legal protection to users and market participants.
Earlier, in December the Verkhovna Rada adopted the first reading of the draft law “On Virtual Assets”, regulating cryptocurrency operations in the country.
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