
“Virtual Assets Should Not Serve as Payment Methods,” States Ukraine Central Bank While Supporting Legalization
The central bank of Ukraine indicated that while digital assets can be authorized and overseen, they cannot qualify as legal tender. The National Bank of Ukraine (NBU) is making strides toward a regulated virtual asset trading market but stands firm against the acknowledgment of any digital currency as legal payment.
NBU Chairman Andriy Pyshny stated on August 7, 2025, “In crafting the legislative framework for virtual assets, we should align with the clear course set by the European MICA directive and corresponding EU Regulations in light of our European integration.”
“Additionally, this directive only came into effect in January 2025, and it allows considerable latitude for national compliance and discretion,” he remarked.
The NBU underscored the importance of establishing “red lines” concerning monetary sovereignty, payment functionalities, and avoiding capital control evasion amidst wartime.
“It is crucial for us to ensure adherence to our ‘red lines,’” Pyshny asserted. “Virtual assets cannot serve as payment methods and must not jeopardize the effectiveness of our monetary tools.”
“There mustn’t be a transfer of monetary authority or a compromise of the National Bank’s capabilities due to the legalization of virtual assets,” he further added.
Digital currency will not serve as a payment method in Ukraine — this is the “red line” of the National Bank, stated the chief central banker.
—-Dear National Bank of Ukraine, here you go
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Ukraine has a vast OTC market. It cannot be shut down.
— TheFuzzStone (@thefuzzstone) August 7, 2025
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“Legalizing virtual assets should also maintain our effectiveness in financial oversight”
According to Pyshny, upcoming crypto regulations should implement the standards set forth by the International Financial Task Force (FATF) alongside pertinent European guidelines. He clarified, “it must not promote the shadow economy.”
Moreover, he proposed that the optimal approach would be to use the legalization of virtual assets to reduce the shadow economy.
“This suggests we may need to engage in a broader conversation — discussing what exactly will motivate the exit from the shadows of existing virtual assets that are currently owned,” he added.
Kyiv is also actively working to uphold the hryvnia’s dominance and is testing a central bank cryptocurrency (CBDC), the e-hryvnia.
Explore: Ukraine Proposes Changes to Law to Include Digital Assets in National Strategic Reserve
Ukraine Proposes Changes to Law to Include Digital Assets in National Strategic Reserve
On June 10, 2025, Ukraine introduced a draft law to amend existing regulations, allowing virtual assets to be included in gold and foreign currency reserves. These proposed modifications would permit digital assets like BTC to enter the nation’s reserves. Importantly, the country is swiftly moving to establish its crypto reserve.
This follows an news made by Yaroslav Zhelezniak, a Ukrainian legislator involved in overseeing the nation’s finance and taxation policies, declaring the intention to create a crypto reserve.
“As parliamentarians, we believe this move will facilitate Ukraine’s integration into global financial innovations,” Zhelezniak explained. “Effectively managing crypto reserves could enhance macroeconomic stability and unveil new avenues for digital economic growth.”
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Key Takeaways
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Ukraine has emerged as one of the more progressive countries regarding cryptocurrency, with significant grassroots adoption driven by remittances, donations, and digital-native communities.
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The National Bank of Ukraine endorses legalizing crypto asset within a solid regulatory framework. Nonetheless, the NBU remains against recognizing any digital currency as legal tender.
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