Ukraine’s NBU Draws Hard Line: Crypto Legalized—But Banned as Payment Tool

Ukraine takes two steps forward, one step back on crypto adoption.

The National Bank of Ukraine (NBU) just greenlit digital assets—then immediately slapped restrictions on their real-world utility. Talk about having your bitcoin and not spending it too.

The fine print: While crypto gains legal status, the central bank maintains its iron grip on monetary policy by prohibiting its use for payments. Merchants can't price goods in BTC, and P2P transactions remain firmly in the gray zone.

Observers note the move mirrors Russia's 2020 approach—legalize but neuter. Meanwhile, Ukrainian HODLers shrug and keep stacking sats between air raid sirens. Because when your currency loses 30% against USDT in a year, what's left to lose?

One banking insider quipped: 'This way we get the innovation headlines without actually innovating.' Classic central bank maneuver—regulate first, understand later.

TLDR

• Ukraine has decided to legalize cryptocurrencies but will not allow them as legal tender.
• The National Bank of Ukraine stated that virtual assets cannot undermine the effectiveness of monetary policy.
• The country will align its crypto regulations with FATF standards and European Union requirements.
• The central bank will have the authority to include cryptocurrencies like Bitcoin in state reserves.
• The new law aims to prevent the use of crypto to bypass currency controls during martial law.

Ukraine’s central bank has confirmed that the country will legalize cryptocurrencies but will not allow them as legal tender. Governor Andriy Pyshnyy stated that this restriction aims to protect Ukraine’s monetary policy tools and overall financial stability. The MOVE aligns with the bank’s strategy to regulate digital assets while preserving control over the national currency.

Ukraine Legalizes Crypto but Bans Payment Use

The National Bank of Ukraine (NBU) will recognize cryptocurrencies under a legal framework, but payments in crypto will remain prohibited. Pyshnyy emphasized, “Virtual assets cannot be a means of payment, cannot in any way undermine the effectiveness of our monetary instruments.” This position, he said, represents a “red line” that the bank will not cross.

Ukraine intends to ensure that crypto laws comply with international standards, including the Financial Action Task Force (FATF) guidelines. The bank will also align regulations with relevant European Union requirements to strengthen oversight. Authorities see this as necessary for maintaining monetary sovereignty and preventing unauthorized capital flows.

The NBU has underlined that crypto should not enable bypassing currency controls, especially under current martial law conditions. By keeping cryptocurrencies outside payment systems, the bank seeks to protect the hryvnia’s role as the sole legal tender. The new framework will focus on risk management and institutional accountability.

Legislative Framework and Reserve Strategy

Ukraine’s crypto legislation will also allow the central bank to include cryptocurrencies like Bitcoin in state reserves. MP Yaroslav Zhelezniak confirmed that the decision on “how, when and how much” will rest solely with the NBU. This flexibility ensures the bank can act based on market conditions and reserve management goals.

The proposed law will not compel the NBU to hold crypto but will give it the authority to do so. Such inclusion could diversify reserves without replacing traditional assets. This approach also provides room for strategic adoption over time.

Reports indicate that Ukraine has been exploring a bitcoin Reserve, similar to initiatives in countries such as the United States and Pakistan. Regulatory clarity from the current legalization process is expected to support this plan. Authorities believe this foundation will mitigate potential risks while enhancing state asset security.

Financial Stability Remains the Priority

Pyshnyy reiterated that legalizing crypto must not weaken Ukraine’s monetary system or the central bank’s authority. He stressed the importance of maintaining effective financial monitoring under the new laws. This, he said, is essential to ensure compliance with anti-money laundering requirements.

Ukraine’s government maintains that VIRTUAL asset regulation should integrate into the broader financial system without replacing it. The NBU will retain complete control over its monetary policy while overseeing the crypto market. With this balanced approach, the bank aims to safeguard economic stability while embracing new financial technologies.