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Ukrainian Central Bank: Opposes the current cryptocurrency asset bill, stating that it threatens financial stability

The National Bank of Ukraine (NBU) stated that it cannot support the current version of the virtual asset regulatory bill draft, citing that it may jeopardize Ukraine's monetary sovereignty, financial stability, and market competition. The NBU supports regulating the cryptocurrency market under the framework of the EU's Markets in Crypto-Assets Regulation (MiCA), but has raised objections to the content of the draft submitted for a second reading.The NBU noted that the final text was only delivered on the evening of November 4, and several compromises previously reached by the working group with lawmakers and the National Securities and Stock Market Commission of Ukraine (NSSMC) had been removed. NBU Deputy Governor Oleksiy Shaban expressed concerns at the committee meeting the next day, but the format of the meeting did not support a comprehensive discussion. The NBU warned that the draft could allow foreign tokens to enter the Ukrainian market without adequate regulation and leave loopholes for issuers to bypass requirements applicable to domestic issuers. The draft also leaves the number of platforms allowed to operate over the next five years to be determined by the NSSMC, without specifying safeguards to prevent anti-competitive behavior; the NBU called for transparent authorization rules to be written into the law and requested that lawmakers further revise the draft after consulting with relevant parties.
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