Ukraine's NSSMC is moving to regulate cryptocurrency use in political financing to enhance transparency and prevent foreign influence.
Ukraine's National Securities and Stock Market Commission (NSSMC) is taking steps to regulate the use of cryptocurrencies in political campaign financing. Legal advisor Vita Forsyuk made this announcement during an expert discussion organized by International IDEA in Kyiv.
During the event, the NSSMC highlighted concerns regarding transparency risks associated with the "pseudonymous and cross-border nature" of digital assets. The commission examined international best practices, particularly from Moldova and Romania.
Forsyuk detailed several strategies that will be included in the forthcoming legislation aimed at governing the virtual assets market in Ukraine. Key proposals involve:
- Enforcing the "Travel Rule" to identify parties involved in cryptocurrency transactions;
- Mandating virtual asset providers to report to the tax authorities and aligning with international standards such as CARF;
- Limiting access for participants with ties to Russian capital in the Ukrainian market.
“These measures are designed to promote operational transparency and mitigate the risks of undisclosed or foreign influence in political activities,” the NSSMC noted in a press statement.
Following this dialogue, the NSSMC is set to formulate recommendations aimed at improving transparency in political financing as the country approaches future election cycles.
Additionally, the Verkhovna Rada approved the draft law "On Virtual Asset Markets" in its first reading on September 3, 2025. This legislation seeks to clarify the legal status and taxation of cryptocurrencies in Ukraine, with preparations underway for a second reading.
