Ukraine Set to Recognize Cryptocurrencies as a Financial Instrument

News and Analysis

Ukraine moved closer to regulating Bitcoin and other cryptocurrencies as financial instruments after head of the National Securities and Stock Market Commission (SSMCS) Timur Khromaev said the corresponding bill could be submitted for the Parliament’s consideration by the end of 2018 or early next year.

According to local media, Timur Khromaev referred to cryptocurrency as a financial tool, while stressing that it can’t be considered legal tender.

“Crypto units are more like financial tools, they are not legal tender. They are a unit of account and a store of value. This is more like shares, bonds, or promissory notes. We plan to recognize cryptocurrency as a financial asset and allow people to invest in it and use these financial tools,” he said.

The official also noted that Ukraine’s approach to cryptocurrencies is similar to that of such countries as Switzerland, Malta and Gibraltar, adding that the official Kyiv should create conditions for the development of cryptocurrency market in the country as well

Last month, Timur Khromaev said The Financial Stability Council of Ukraine was supportive of a concept for crypto regulations which 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 Financial Stability Council comprises of the Governor the National Bank of Ukraine, the Minister of Finance, heads of the National Securities and Stock Market Commission and the National Commission for State Regulation of Financial Services Markets, and Managing Director of the Deposit Guarantee Fund. They are tasked with detecting and minimizing risks to the stability of the national financial and banking systems. Decisions made by the council are recommendatory.

As reported by ForkLog, The Digital Law that was introduced to Russian parliament in March, would not legalize cryptocurrency payments either, however, the bill suggests that in the future such currencies will be used as payment “in controlled quantities.”

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