IMF Urges Ukraine To Complete Crypto Regulation Update By End-2024, Official Says

The IMF has urged Ukraine to complete virtual asset legislation by the end of 2024 due to regulatory concerns and economic potential.

The International Monetary Fund (IMF) has urged Ukraine to finalize its update of legislation regarding virtual assets by the end of 2024, according to a Facebook post from Oleksandr Bornyakov, a deputy minister of digital transformation of Ukraine on IT industry development.

This requirement was outlined in the Memorandum of Economic and Financial Policies signed between Ukraine and the IMF, Bornyakov said, adding that the European international financial institution cited concerns about the current lack of regulation in the new sector, which poses risks to price stability and the effectiveness of monetary transmission.

“In war conditions, we have to utilize the full spectrum of opportunities and develop new economic sectors. Legalizing the crypto sector can have a powerful economic effect, generating turnover in billions of hryvnias.”

Oleksandr Bornyakov

The Ukrainian official added that the Ministry of Digital Transformation team “underscores the necessity of implementing state regulation in the crypto asset market,” adding that “sufficient legislative groundwork” has been laid for this purpose, with two bills currently registered in the country’s Parliament (bill 10225 and bill 10225-1).

Bornyakov emphasized the urgency of establishing principles for the regulation and taxation of virtual assets, saying the proper crypto regulation “will contribute to the growth of Ukraine’s economy and enhance trust in the country among international partners.”