Ukraine wants to regulate cryptocurrencies

The Financial Stability Board of Ukraine supported the concept of cryptocurrency regulation by Timur Khromaev, head of the National Securities and Exchange Commission (NSSMC).

According to Khromaev, cryptocurrencies and tokens are to be considered as financial instruments. Regulations are also to establish the roles and functions of governmental authorities in the control of the digital currencies market.

Building a consensus

The Financial Stability Board is the equivalent of the SEC. It consists of the President of the National Bank of Ukraine, the Minister of Finance, heads of the National Securities and Exchange Commission and the National Commission for Financial Services Market Regulation and the Managing Director of the Deposit Guarantee Fund. The main task of the authority is to detect and minimize threats to the stability of the domestic financial and banking system. However, decisions made by the board are only recommendations.

Khromaev claims that the above Council decision is “an important first step in building a consensus between government agencies and financial regulators.” The head of the NSSMC added that the framework is designed to ensure transparency and a high level of interaction between “investors and market participants”.

Bitcoin is part of the economy

The concept of recognizing cryptocurrencies as a financial instrument was suggested by the NSSMC recently, because in May 2018, Sam Khromaev stressed the need to legally regulate cryptocurrencies and determine the position of financial supervisors for digital coins. According to the chairman of the Commission, the growing blockchain industry has caused the market for bitcoin and its derivatives to become “an integral part of economic and financial relations”.

Last month, the State Special Communication Service of Ukraine revealed that it did not plan to regulate the mining of cryptocurrencies. The Office therefore stated that it does not intend to license mining. If the decision was different, it would mean that it is a new, specific type of economic activity. Thus, anyone can mine digital currency in Ukraine without registering the company.

 

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