Ukraine Bars Crypto as Legal Tender Despite Push for October Legalization

Ukraine’s National Bank of Ukraine (NBU) has clarified its stance on the use of cryptocurrencies as a means of payment, stating that virtual assets will not be recognized as legal tender, despite the country’s ongoing efforts to develop a regulatory framework for digital assets. NBU Governor Andriy Pyshnyy emphasized on August 8 that “virtual assets cannot be a means of payment in Ukraine,” framing this restriction as a necessary “red line” to preserve monetary policy and prevent illicit financial activity [1].

This position is part of a broader regulatory strategy aimed at integrating cryptocurrencies into the country’s financial system in a controlled manner. The NBU has also intensified its monitoring of unlicensed crypto exchanges, warning that such activities pose risks to banking and payment systems [1]. This follows Ukraine’s wartime experience with digital assets, during which cryptocurrencies were widely used to receive cross-border donations. Public blockchain data shows that Ukraine received over $70 million in crypto by March 2022, primarily in Bitcoin, Ethereum, and stablecoins, which were used to fund medical supplies, protective gear, and defense-related needs [1].

Driven by this experience, Ukraine passed the Virtual Assets law in 2022 to establish a legal framework for licensing, oversight, and taxation of crypto-related businesses. However, enforcement has been delayed due to ongoing tax code amendments and the need to assign regulatory responsibilities. Originally, the plan was to finalize implementation by the first quarter of 2025, aligning with the EU’s Markets in Crypto-Assets (MiCA) framework. NBU First Deputy Governor Kateryna Rozhkova informed Interfax in June 2025 that a new draft of the virtual assets law is expected by October 2025 [1].

The revised bill, being developed with international technical assistance, aims to meet the regulatory expectations of the International Monetary Fund (IMF) and the European Union. Officials have noted that the delay reflects the complexity of aligning tax, anti-money laundering (AML), and licensing regimes, though preparatory work is already underway [1].

In addition, in June 2025, lawmakers introduced Draft Law No. 13356, which would grant the NBU the authority 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 it would offer greater flexibility in managing reserves, while critics raise concerns about the volatility of digital assets and their potential impact on reserve stability [1].

The NBU’s recent statements reaffirm that crypto legalization remains a priority, but only under a tightly controlled framework that ensures the hryvnia remains Ukraine’s sole legal tender. Regulatory agencies continue to prepare for implementation through measures such as monitoring unlicensed market activity and coordinating with international partners. The process reflects an effort to leverage the efficiency of digital assets demonstrated during the war while embedding them in a structure designed to protect monetary sovereignty and financial stability [1].

Source: [1] [NBU draws red line on crypto payments as Ukraine eyes October legalization](https://cryptoslate.com/nbu-draws-red-line-on-crypto-payments-as-ukraine-eyes-october-legalization/)