Ukraine Central Bank Open to Crypto Legalization — But With Strict ‘Red Lines’

The National Bank of Ukraine has signaled readiness to legalize cryptocurrencies but insists on firm restrictions. Governor Andriy Pyshnyy says digital assets must not undermine monetary policy, martial law measures, or national financial stability.

The National Bank of Ukraine (NBU) is prepared to enter discussions about legalizing crypto assets, provided they do not cross certain “red lines,” according to statements by its governor, Andriy Pyshnyy. Speaking to RBC-Ukraine in a wide-ranging interview that covered economic challenges during wartime and even coin design changes, Pyshnyy made it clear that while the bank is open to regulated digital asset markets, cryptocurrencies like Bitcoin will not be permitted as legal tender.

He stressed that any legalization must not compromise the NBU’s ability to conduct effective monetary policy or bypass restrictions imposed under martial law. “It is important for us that our ‘red lines’ are clearly followed. Virtual assets cannot be a means of payment and cannot in any way undermine the effectiveness of our monetary instruments,” Pyshnyy said.

The governor emphasized that the central bank should retain all its powers and capabilities, and warned that crypto must not become a tool for evading measures aimed at stabilizing the monetary market or safeguarding gold and foreign currency reserves. Regulation should include strong protections for consumer rights in the digital currency space, technical tools for effective oversight, and compliance with global anti-money laundering standards. Ukraine, he added, must align with the Financial Action Task Force (FATF) guidelines and the EU’s Markets in Crypto Assets (MiCA) framework.

Pyshnyy sees potential in legalization to “de-shadow” the crypto market, bringing existing digital assets into a transparent framework. Such a move, he believes, would enhance Western partners’ assessment of Ukraine’s financial system. “Perhaps we need a broader discussion — what exactly will encourage bringing those virtual assets that already exist and are owned today out of the shadows,” he noted.

Ukraine has been gradually moving toward crypto regulation in recent years, spurred by increased usage during wartime currency restrictions. In May, reports surfaced that the government is considering creating a strategic Bitcoin reserve. In June, lawmakers submitted draft legislation that would allow the NBU to hold cryptocurrencies as part of its foreign exchange reserves, a move the bill’s sponsors say would not conflict with international obligations.

According to Danylo Hetmantsev, chair of the Verkhovna Rada’s finance, taxation, and customs policy committee, lawmakers could review a bill to legalize the digital assets market as early as August. However, progress has been slowed by political disputes, with opposition members accusing President Volodymyr Zelenskyy’s administration of blocking earlier proposals.

Meanwhile, some Ukrainian crypto companies are exiting the domestic market due to wartime restrictions and regulatory uncertainty. Payment card issuer Weld Money announced it was shutting down operations in Ukraine, while crypto exchange Kuna revealed it would cease local trading this year.

Our creator. creates amazing NFT collections! 
Support the editors - Bitcoin_Man (ETH) / Bitcoin_Man (TON)

Pi Network (Guide)is a new digital currency developed by Stanford PhDs with over 55 million participants worldwide. To get your Pi, follow this link https://minepi.com/Tsybko and use my username (Tsybko) as the invite code.

Binance: Use this link to sign up and get $100 free and 10% off your first months Binance Futures fees (Terms and Conditions).

Bitget: Use this link Use the Rewards Center and win up to 5027 USDT!(Review)

Bybit: Use this link (all possible discounts on commissions and bonuses up to $30,030 included) If you register through the application, then at the time of registration simply enter in the reference: WB8XZ4 - (manual)