It’s been quite a while since Ukraine made any notable progress towards regulating its crypto sector. A new decision in Kiev, however, qualifies as an important development.
The country’s Financial Stability Council has supported a concept to regulate crypto transactions. The body is composed of representatives from the National Bank of Ukraine, the Ministry of Finance, the Deposit Guarantee Fund, the National Securities and Stock Market Commission (NSSMC), and the National Financial Services Market Commission.
According to Khromaev, the concept involves recognizing cryptocurrencies and tokens as financial instruments, establishes the roles and functions of governmental bodies in regulating those instruments, in addition to licensing transaction participants, defining information disclosure conditions, and other factors.
The National Bank of Ukraine [NBU], National Commission for State Regulation of Financial Services Market, the Minister of Finance and The State Financial Monitoring Services are the government bodies which recognize cryptography and tokens.
Timur Khromaev remarked this as an “Important Step.” This prominent move directs towards building a consensus among the government agencies and financial regulators confirming how prepared the concept is to work with the Verkhovna Rada of Ukraine.
The National Securities head quoted:
“Kryptonian to form a legislative and regulatory framework that will ensure the transparency and quality of the relations between investors and market participants with cryptic currencies.”
On May 14, 2018, reports emerged that the head of the NSSMC had made his stance concerning the creation of a regulatory framework for the industry. At the time, he stated that the crypto industry is fast becoming a formidable force to reckon with in global “economic and financial relations,” concluding that it only makes sense to regulate bitcoin and other cryptocurrencies as financial instruments.
According to what he believes, the new rules can be formulated taking cryptocurrency into consideration. Hence, the involvement of status, activities, and implications have to be adopted and standardized by financial regulatory bodies.
Cryptocurrencies have been steadily gaining popularity in Ukraine, especially in the last couple of years. Local media claim that the country is among the top 10 by number of crypto users.
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