NBU requests IMF technical assistance on virtual assets, digital technologies

The National Bank of Ukraine (NBU), in cooperation with the International Monetary Fund (IMF), has requested a separate block of technical assistance related to virtual assets and digital technologies, Governor of the National Bank of Ukraine Andriy Pyshnyy says.

"We are also reforming supervision in order to strengthen the analytical component and combine expertise, including on technological things and AML (anti money laundering)," he said in an interview with Interfax-Ukraine in Washington.

Pyshnyy also said that Ukraine had launched one of the progressive mechanisms for testing solutions aimed at introducing digital technologies, working with virtual assets and innovative fintech developments – the so-called regulatory sandbox, similar to how it functions in Singapore, the UK, Switzerland, and the United States.

"This will allow testing solutions with a limited number of users, controlling risks, working out technological and regulatory models. Working out, and those of them that confirm the viability and compliance will be released to the market quite quickly," the NBU governor explained.

He also noted that over the past six months after his appointment, he held 3-4 very substantive detailed meetings with Minister of Digital Transformation Mykhailo Fedorov. "We go through the entire digital agenda: from e-residency to virtual assets. For almost every item, we have an understanding of what we are doing, what will 'fly' from the proposed, and what needs to be finalized, and sometimes rethinking," Pyshnyy pointed out.

In this regard, he assured that Ukraine will not lag behind technological progress in the financial sector because of the war.

"On the contrary. The war prompted decisive and creative decisions, removed some obstacles. Despite the war, if you analyze our decisions over the past 4-5 months, you will see that we have unfrozen most of the projects and intensified processes. There is also a downside to innovation – operational sustainability functioning, risks of financial stability and prevention of legalization. These are not stop factors, but tasks that should be worked on," the NBU governor said.

In particular, he said that at the spring meeting of the IMF and the World Bank in Washington, the Ukrainian Diia application was remembered at almost every high-level meeting. In particular, during a meeting with the World Bank, its vice president, Anna Bjerde, said that the bank saw the possibility of using the Diia digital platform to strengthen solvency in matters related to supporting small and medium-sized businesses.

"We have an entry point, we have a multifunctional national platform, and we have proven the functional ability to support millions with appropriate authorization and reporting," Pyshnyy explained.

Source: www.en.interfax.com.ua