NBU draws red line on crypto payments as Ukraine eyes October legalization

Ukraine’s central bank said it remains prepared to move forward with crypto legalization while reaffirming that virtual assets will not be recognized as legal tender, per RBC Ukraine.

National Bank of Ukraine (NBU) Governor Andriy Pyshnyy said on August 8 that “virtual assets cannot be a means of payment in Ukraine” and described this restriction as a “red line” necessary to safeguard monetary policy and prevent channels for illicit transactions.

The central bank has also stepped up scrutiny of unlicensed crypto exchange operations, warning on August 4 that such activity poses risks to banking and payment systems.

The policy stance is shaped in part by Ukraine’s wartime experience with digital assets. In the early months of the Russian invasion, government ministries, NGOs, and volunteer groups turned to cryptocurrencies to receive rapid, cross-border donations.

According to public blockchain data, Ukraine received over $70 million in crypto by March 2022, primarily in Bitcoin, Ethereum, and stablecoins. Those funds were used to purchase medical supplies, protective equipment, and support defense-related needs, demonstrating the speed and flexibility of blockchain transfers compared with traditional banking channels during crisis conditions.

That experience accelerated calls for a comprehensive legal framework that could integrate crypto into Ukraine’s financial system without undermining the hryvnia’s role or creating vulnerabilities. Parliament passed the Virtual Assets law in 2022, providing the foundation for licensing, oversight, and taxation of crypto-related businesses.

Enforcement, however, was delayed as lawmakers worked to amend the tax code and designate the appropriate regulators. Under the initial roadmap, lawmakers aimed to pass implementing legislation by the first quarter of 2025, aligning with the European Union’s Markets in Crypto-Assets (MiCA) framework and applying securities-style taxation with no preferential treatment.

That timetable has since shifted. NBU First Deputy Governor Kateryna Rozhkova told Interfax that a new draft of the virtual assets law is expected by October 2025. The bill is being developed with international technical assistance and is designed to meet IMF and EU regulatory expectations. Officials have emphasized that while the delay reflects the complexity of aligning tax, AML, and licensing regimes, preparatory work is already underway.

Meanwhile, in June, lawmakers introduced Draft Law No. 13356, which would give the NBU the discretion to hold cryptocurrencies such as Bitcoin in national reserves alongside traditional assets. The proposal does not mandate such holdings and leaves decisions entirely to the central bank. Proponents argue this would give Ukraine flexibility in managing reserves, while critics highlight the volatility of digital assets and potential impacts on reserve stability.

The NBU’s latest statements confirm that legalization remains on the agenda, but only within a tightly controlled framework that preserves the hryvnia’s status as the sole legal tender.

Regulatory agencies are continuing to prepare for implementation through measures such as monitoring unlicensed market activity and coordinating with international partners.

The process reflects an effort to capture the wartime-tested advantages of digital assets while embedding them in a structure designed to protect monetary sovereignty and financial stability.

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