Ukraine's Central Bank Opposes Current Crypto Asset Bill, Says It Threatens Financial Stability

The National Bank of Ukraine (NBU) stated it cannot support the current draft of the virtual asset regulation bill, citing risks to the country's monetary sovereignty, financial stability, and market competition. The NBU supports regulating the cryptocurrency market under the framework of the European Union's Markets in Crypto-Assets Regulation (MiCA) but raised objections to the draft content submitted for its second reading. The NBU noted that the final text was only delivered on the evening of November 4, and that multiple compromises previously reached with lawmakers, the National Securities and Stock Market Commission (NSSMC), and other parties had been removed. NBU Deputy Governor Oleksiy Shaban raised concerns at a committee meeting the following day, but the meeting format did not allow for a full discussion. The NBU warned that the draft could allow foreign tokens to enter the Ukrainian market without adequate regulation and create loopholes for issuers to bypass requirements applicable to domestic issuers. The draft also leaves the number of platforms permitted to operate over the next five years to the NSSMC's discretion, without stipulating safeguards against anti-competitive practices. The NBU called for transparent licensing rules to be written into law and urged lawmakers to further revise the draft in consultation with relevant parties.