First Deputy Governor Kateryna Rozhkova confirmed that international technical assistance will support the process, ensuring that the new legislation aligns with modern European standards.
Key Elements of the Draft Law
Based on the European MiCA directive, the draft law will establish a framework where even tokens backed by tangible assets are permitted only if the collateral is located within Europe. Rozhkova emphasized that EU countries typically regulate the virtual asset market through a division of responsibilities:
-
Central Banks: Focus on tokens secured by currencies or money.
-
Securities Market Regulators/Ministries of Finance: Oversee other types of tokens.
Ukraine will adopt a similar approach, with regulatory responsibilities carefully allocated among international partners. However, Rozhkova assured that the Ministry of Digital Economy will not serve as the primary regulator, in line with the International Monetary Fund’s (IMF) position.
Ensuring Stability and Transparency
According to Rozhkova, the primary goal of the new law is to maintain macro-financial stability by preventing virtual assets from replacing traditional money. Key measures will include:
-
Transparency and Financial Monitoring: Ensuring that all virtual asset operators comply with strict financial monitoring requirements.
-
Protection Against Capital Flight: Safeguarding the financial system and the general population from potential risks associated with unregulated crypto markets.
-
Internal Regulatory Acts: After the law’s adoption, the designated regulator will be tasked with developing additional internal rules to ensure the market is effectively monitored.
Rozhkova also highlighted challenges such as the dispersion of crypto wallets, which may complicate regulation and pose risks for legalization and tax evasion. She stressed that public awareness and education on these issues are paramount.
Model for Regulatory Power Distribution
The National Securities and Stock Market Commission (NSSMC) has already developed a model for sharing regulatory authority in the virtual asset market. This model, which was recently presented to the IMF mission and the Financial Stability Board, suggests:
-
NSSMC's Role: To regulate virtual assets linked to tangible assets or asset-referenced tokens (ART).
-
NBU's Role: To manage tokens that are secured by money, ensuring a clear distinction between different types of virtual assets.
Conclusion
The draft law on virtual assets, expected by October 2025, marks a significant step forward in creating a transparent and secure framework for the rapidly growing digital assets market in Ukraine. With a structure modeled on European MiCA standards and backed by international expertise, the new legislation aims to strike a balance between innovation and financial stability while protecting the population and the financial system.
Stay updated on the latest developments in Ukraine's regulatory environment for virtual assets as the NBU, in cooperation with international partners, works to implement these crucial changes.
