Ukraine’s central bank is refusing to back the country’s cryptocurrency legalization bill in its current form, warning that provisions on foreign-issued tokens and trading platform licensing could erode monetary sovereignty and hand regulators excessive power over who gets to operate in the market.

The National Bank of Ukraine said in a November 4 statement that draft law No. 10225-d, now headed for a second reading in parliament, leaves unresolved several issues raised during negotiations with lawmakers, regulators and industry participants. The bank said it backs crypto regulation built on the European Union’s Markets in Crypto-Assets framework, known as MiCA, and on International Monetary Fund recommendations, but argued the text as…