Ukraine central bank opposes current crypto bill

The National Bank of Ukraine has said it cannot support draft law No. 10225d on virtual assets in its current form, urging lawmakers to revise the bill before its second reading. The bank supports regulating crypto assets under principles aligned with the European Union’s Markets in Crypto-Assets framework, but says the draft lacks safeguards it considers necessary for financial stability and fair competition. The NBU’s main concern is that foreign-issued tokens could enter Ukraine without adequate oversight. The bank says some tokens may function like electronic money, creating risks for domestic payments and the transmission of monetary policy. It wants authority to assess foreign tokens and restrict their circulation when necessary, alongside requirements for overseas assets comparable to those applied to locally issued tokens. The bank also objects to provisions it says could let foreign issuers bypass requirements imposed on domestic participants. It argues that differing admission standards could create regulatory arbitrage and leave parts of the market outside effective supervision. A separate dispute concerns licensing for crypto trading platforms. According to the...