Ukraine is preparing to formally recognize cryptocurrencies under a tightly controlled regulatory framework, but the National Bank of Ukraine (NBU) has made it clear that digital assets will not be granted the status of legal tender.
Governor Andriy Pyshnyy told RBC-Ukraine that this restriction is a “red line” for the central bank, stressing that virtual assets must not disrupt the country’s monetary tools or undermine its financial stability.
The legalization push is aimed at strengthening the financial system, aligning with international standards such as those set by the Financial Action Task Force (FATF) and European Union regulations.
The framework will prohibit crypto from being used for payments and will seek to prevent its use in bypassing currency controls, particularly under martial law. Pyshnyy emphasized that oversight and financial monitoring remain top priorities in shaping Ukraine’s crypto legislation.
This development coincides with Ukraine’s ongoing discussions around establishing a Bitcoin reserve. Lawmaker Yaroslav Zhelezniak previously revealed that a proposed bill would allow—though not require—the central bank to allocate part of its reserves to cryptocurrencies like Bitcoin. The decision on whether, when, and how much to hold in crypto would rest solely with the regulator.
Supporters believe that legal clarity could provide a more stable foundation for the reserve plan, while still maintaining the cautious approach that Ukrainian authorities view as essential to managing potential risks tied to Bitcoin holdings.
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Alex is an experienced financial journalist and cryptocurrency enthusiast. With over 8 years of experience covering the crypto, blockchain, and fintech industries, he is well-versed in the complex and ever-evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His approach allows him to break down complex ideas into accessible and in-depth content. Follow his publications to stay up to date with the most important trends and topics.
Source: https://coindoo.com/ukraine-sets-crypto-legalization-plan-bans-use-as-legal-tender/