Ukraine Sets Crypto Legalization Plan, Bans Use as Legal Tender
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 Editor-in-Chief of Coindoo and co-founder of Millennial Media Group, with nearly a decade of experience covering financial markets - crypto first, then everything else. It started in 2016 with Bitcoin. Like most people at the time, he didn't fully understand it - so he kept digging. Blockchain, tokenomics, the projects, the cycles. That curiosity never stopped, and eventually pulled him into traditional markets too: equities, commodities, macro. Not because he left crypto behind, but because you can't properly understand one without the other. What drives him is straightforward: he wants to know why something is happening, not just that it's happening. Most market coverage stops at the headline - price up, price down, here's a chart. Alex finds that kind of reporting actively unhelpful. If you walk away from an article without understanding the mechanism behind the move, what did you actually learn? He holds a degree in Tourism from New Bulgarian University - not the most obvious path into financial markets, but markets have a way of pulling in people who are simply too curious to stay out. He has authored over 200 in-depth analyses and more than 10,000 articles across crypto and traditional finance. He still thinks every day in markets teaches him something new. That's probably why he hasn't stopped.
