NBU Considers Regulated Crypto Framework Amid Caution on Legal Tender

Generated by AI AgentCoin World
Friday, Aug 8, 2025 7:29 am ET1min read
Aime RobotAime Summary

- Ukraine's NBU reviews crypto legal framework but rejects legal tender status, calling it a "red line" to protect monetary policy and currency controls.

- Governor Pyshnyy emphasizes crypto risks under martial law and demands alignment with FATF/EU standards for any digital asset legislation.

- NBU tests e-hryvnia digital currency and collaborates with global CBDC pioneers like ECB and Bank of Singapore to explore digital finance.

- Proposed law allows NBU to hold Bitcoin in reserves, reflecting cautious exploration of crypto's role under strict regulatory oversight.

The National Bank of Ukraine (NBU) has indicated it is reviewing the legal framework for cryptocurrencies, though it has firmly ruled out their use as legal tender. According to NBU Governor Andriy Pyshnyy, allowing crypto to function as a means of payment represents a “red line” that the institution will not cross [1]. In an interview with RBC-Ukraine, Pyshnyy emphasized that virtual assets must not interfere with the central bank’s monetary policy or weaken its economic management tools. He also highlighted the risks of using crypto to circumvent currency controls during the ongoing martial law in the country [1].

Pyshnyy further clarified that any proposed legislation on digital assets must align with global regulatory standards, including guidelines set by the Financial Action Task Force (FATF) and European Union norms [1]. The NBU is advocating for robust systems to monitor crypto transactions and combat illicit activities, ensuring transparency and compliance with international financial regulations. The central bank believes that integrating crypto into a regulated framework could enhance Ukraine’s reputation in global finance [1].

Simultaneously, the NBU is piloting its own digital currency, the e-hryvnia, in collaboration with a technology partner. Pyshnyy noted that the project aims to provide critical insights into how a digital version of the hryvnia could function and inform future decisions regarding its potential rollout [1]. The NBU is also closely observing the development of central bank digital currencies (CBDCs) in other countries and is currently cooperating with major institutions such as the European Central Bank, the Bundesbank, and the Bank of Singapore [1].

In June, Ukrainian lawmakers introduced a draft law proposing that the NBU be allowed to hold

Bitcoin
and other digital assets in the country’s national reserves, reflecting growing interest in integrating crypto into the country’s broader financial strategy [1]. While the NBU remains cautious about the risks associated with crypto, it acknowledges its potential as part of Ukraine’s financial future, provided it remains under strong regulatory oversight and does not undermine central banking authority [1].

Source:

[1] Ukraine Central Bank Considers Crypto Legalization

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