Work on the legislative framework on cryptoassets in Ukraine

Member of the National Commission for Securities and Stock Market of Ukraine (NCSM) Yuriy Boyko shared information about the regulator’s current work on the legislative framework on virtual assets. He emphasized that the alternative bill from the Ministry of Digital Transformation (Ministry of Digital Transformation) is only a “cosmetic renovation” of the law “On Virtual Assets” adopted in 2022. In an interview with Delo.ua, Boyko said that the National Securities and Stock Market Commission and the Ministry of Digital Development are working on two different bills, the merger of which is unlikely.

According to Boyko, the International Monetary Fund (IMF) in March 2024 called on Ukraine to update the law on virtual assets. This process should be completed by the end of 2024 with the participation of the NBU and the National Securities and Stock Market together with IMF experts. The updated law should be consistent with international best practices, taking into account economic development goals and risks to financial stability.

Boyko noted that the main document No. 10225 from the National Securities and Stock Market Commission is intended to bring national legislation into compliance with the MiCA regulations. This project, with the exception of a few amendments, repeats the regulator’s proposals from June 2023. However, the alternative bill No. 10225-1 from the Ministry of Digital Development, according to Boyko, does not solve key problems, maintaining the shortcomings of the previous law.

Deputy Minister of Digital Transformation of Ukraine Alexander Bornyakov, in a conversation with Incrypted, emphasized the importance of protecting consumer rights. He noted that the Ministry of Digital Development’s bill establishes requirements for the public offering of virtual assets, which should improve consumer awareness and reduce the risks of their investments. Bornyakov also emphasized the need to balance interests in order to avoid unnecessary regulation, which could reduce the investment attractiveness of Ukraine.

Yuriy Boyko believes that combining the two bills into one is unlikely. The main work will be focused on project No. 10225 as part of the implementation of the IMF Memorandum. Despite this, Alexander Bornyakov does not rule out the revision of one of the two existing bills, emphasizing the readiness of the Ministry of Digital Development to support any version of regulation that contributes to the development of the crypto market in Ukraine.

Work on the legislative framework on cryptoassets in Ukraine continues. The National Securities and Stock Market Commission and the Ministry of Digital Development present different approaches to regulation, but both parties strive to create conditions for the safe and effective development of the crypto market in the country. The adoption of new legislation is expected no earlier than the first half of 2025, which will allow Ukraine to comply with international standards and improve the investment climate in the field of virtual assets.