The NBU's position on cryptocurrencies: Ukraine's path and challenges

The National Bank of Ukraine continues to maintain its conservative stance on cryptocurrencies, which has remained uncertain since several years ago. First Deputy Governor of the NBU, Kateryna Rozhkova, confirmed on the We Are Ukraine TV channel that crypto assets are not considered cash, aligning her position with the International Monetary Fund (IMF).

Rozhkova emphasized that the IMF considers any changes in monetary policy during the war to be risky for Ukraine's financial stability. She also pointed out that the memorandum with the IMF contains plans to study European and other countries' cryptoasset regulations for further implementation in Ukrainian legislation.

According to her, macrofinancial stability, not cryptocurrencies, is currently a priority for the Ukrainian economy. Rozhkova added that the issue of cryptocurrency is part of a broader analysis of the country's financial situation.

Already in 2017, the NBU, the National Securities and Stock Market Commission (NSSMC), and the National Commission for Regulation of Financial Services Markets in a joint statement noted that the complex legal nature of cryptocurrencies does not allow them to be recognized as cash, currency of another country, means of payment, etc.

In fact, the draft law "On Virtual Assets" adopted in February 2022 provided for the launch of a legal cryptoasset market in Ukraine. However, it required the approval of another draft law on the taxation of cryptocurrency transactions.

Unfortunately, the working group working on the amendments to the Tax Code faced legal uncertainties in the law "On Virtual Assets". Therefore, it was decided to finalize the law and implement the norms of the European MiCa document. The recently published National Revenue Strategy states that options for taxation of virtual assets in the Ukrainian context will be considered during 2024.