Ukraine's Crypto Bill Stalled by Over 2,500 Amendments, Facing Uncertain Future

Legislative Labyrinth: Ukraine's Crypto Bill Stalled by Over 2,500 Amendments

The path to regulated cryptocurrency in Ukraine has hit a significant roadblock, with the crucial bill on virtual assets facing an indefinite delay in the Verkhovna Rada. The sheer volume of proposed amendments – a staggering 2,538 – has brought the legislative process to a grinding halt, signaling the profound complexities surrounding digital asset regulation.

A Mountain of Amendments and Divergent Views

Member of Parliament Yaroslav Zhelezniak revealed the daunting number of proposed changes to Bill №10225-д, himself having signed off on 1,179 of them. Adding to the complexity, the National Bank of Ukraine has submitted its own extensive feedback, spanning an imposing 300 pages. This deluge of input underscores the intricate nature of establishing a framework for cryptocurrencies, a sector that touches upon financial, tax, and security interests.

The bill, which passed its first reading in early September 2025, has seen its committee-level deliberations drag on since spring. A major point of contention revolves around tax incentives and the very taxation of crypto assets. Danylo Hetmantsev, head of the relevant committee, has openly voiced his opposition to preferential tax treatment and has argued against recognizing cryptocurrencies as a legitimate means of payment. This stance highlights a fundamental divergence in how lawmakers and industry stakeholders envision the future of digital assets in Ukraine.

Battling Fraud and Addressing Operational Gaps

Beyond taxation, a significant portion of the amendments addresses critical mechanisms for combating fraud and ensuring counterparty due diligence. This includes debates over the powers to block suspicious transactions and assets. However, experts are sounding alarms that the current draft may contain critical deficiencies in its ability to respond swiftly to illicit activities. Bohdan Slutskyi, an economist at the Center for Economic Strategy, points out a significant concern: "Currently, the bill prohibits blocking client funds and issuer reserves even when fraud is suspected. This hinders the ability to react promptly to the risk of asset withdrawal."

Such loopholes, if left unaddressed, could significantly elevate risks for both individual users and the broader payment infrastructure. The intention behind these proposed checks is to prevent Ukraine from becoming a haven for illicit finance, a crucial aspect when considering international compliance standards like Anti-Money Laundering (AML) and the expectations of foreign investors. Any perceived weakness could deter much-needed capital and damage the reputation of Ukraine's burgeoning crypto market.

The Road Ahead: A Prolonged Negotiation

The protracted nature of this legislative process is not surprising. It reflects the multifaceted interests at play, involving financial institutions, tax authorities, law enforcement, and commercial crypto players. Moreover, aligning with international standards is paramount to avoid capital flight and reputational damage. While Hetmantsev had previously projected a 2-3 month refinement period, the current situation suggests a much longer, more uncertain timeline.

The realistic outlook points to additional weeks, if not months, of painstaking negotiation. The core disagreements—taxation policies, the scope of asset-blocking powers, and AML criteria—must be resolved for the bill to progress. Failure to bridge these divides will inevitably delay the legalization of the crypto market and erode the confidence of significant investors. As Zhelezniak succinctly put it, the bill is still very much "on paper," with no firm date set for its second reading until a cohesive document emerges from the sea of amendments. The ultimate goal is to transform a fragmented collection of proposals into a unified, agreed-upon piece of legislation.