Ukraine’s Draft Law on Virtual Assets Excludes Cryptocurrencies as Legal Tender

Danylo Hetmantsev, head of Ukraine's parliamentary Committee on Finance, Taxation and Customs Policy, has confirmed that cryptocurrencies will not be recognized as a means of payment under the proposed "On VIRTUAL Assets" legislation. The decision stems from concerns over national security and monetary sovereignty, with Hetmantsev comparing unrestricted crypto adoption to allowing uncontrolled circulation of foreign currencies like the US dollar or euro.

The draft law, which passed its first reading in September 2025, remains subject to significant revisions. Hetmantsev criticized the initial draft's quality, suggesting it appeared AI-generated before committee revisions. The legislation now enters a phase of substantive amendments, with policymakers seeking to balance innovation with financial stability safeguards.