Ukraine's Central Bank Discusses the Legalization of Cryptocurrencies
The National Bank of Ukraine (NBU) is finalising a comprehensive regulatory framework for cryptocurrencies, aiming to legally recognise digital assets by October 2025 while explicitly banning their use as legal tender or for daily payments to protect monetary sovereignty and financial stability.
Under draft law No. 3637, cryptocurrencies such as Bitcoin and Ethereum will be granted legal status. However, they will be prohibited from use in retail payments or daily transactions, aligning with EU standards like the Markets in Crypto-Assets (MiCA) directive.
Ukraine plans a crypto taxation regime involving a total tax rate of 10% on crypto holdings and transactions—5% personal income tax plus 5% military levy—to encourage legalization and formalization of previously unregistered crypto assets. The parliamentary committee on finance targets bill evaluation and initial reading by late August 2025.
The new laws aim to comply with Financial Action Task Force (FATF) recommendations and European Union regulations to enhance transparency, reduce illicit activities, and integrate the crypto market safely within the financial system.
Ukraine promotes the government-backed digital currency, the e-hryvnia, as an official digital alternative. The NBU is also considering incorporating Bitcoin into national reserves, with the country reportedly holding about $5.4 billion worth of BTC.
The NBU’s firm stance prohibits cryptocurrencies from undermining monetary instruments or being used to bypass currency controls, a concern heightened under ongoing martial law conditions. The bank does not want cryptocurrency to be used for payments.
NBU Governor Andriy Pyshnyy emphasises that cryptocurrencies are investment tools, not payment instruments, ensuring the hryvnia remains the sole legal tender and monetary policy effectiveness is preserved. Pyshnyy explained that while cryptocurrency could be part of Ukraine's financial future, it must not reduce the central bank's power or weaken its tools for managing the economy.
The NBU is collaborating with international partners, including the European Central Bank, the Bundesbank, the Bank of France, the Bank of Belgium, and the Bank of Singapore, in regards to central bank digital currencies (CBDCs). The project aims to provide the bank with important feedback for a future decision regarding the e-hryvnia.
In conclusion, Ukraine’s regulatory landscape for cryptocurrencies is evolving towards legal recognition with restrictions on payment use, comprehensive taxation, adherence to international financial regulations, and a parallel development of the e-hryvnia as a CBDC, supported by NBU policies designed to maintain macroeconomic and monetary stability.
Bitcoin and other cryptocurrencies will be granted legal status in Ukraine, but their use in retail payments or daily transactions will be prohibited, aligning with EU standards like the Markets in Crypto-Assets (MiCA) directive. The parliamentary committee on finance aims to evaluate and read the bill by late August 2025, introducing a crypto taxation regime involving a total tax rate of 10%.
The new laws aim to comply with Financial Action Task Force (FATF) recommendations and European Union regulations to enhance transparency, reduce illicit activities, and integrate the crypto market safely within Ukraine's financial system, while maintaining the hryvnia as the sole legal tender. The National Bank of Ukraine (NBU) is also considering incorporating Bitcoin into national reserves, but does not want cryptocurrency to be used for payments due to concerns about monetary sovereignty and financial stability.
