Ukraine to Regulate Cryptocurrencies as Financial Instruments

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Ukraine to Regulate Cryptocurrencies as Financial Instruments

By Benson Toti - min read

Ukraine looks set to legalise cryptocurrencies and joining the growing list of countries warming up to the new asset class.

National Securities and Stock Market Commission chairman Timur Khromayev has given the surest sign yet that the country will regulate cryptocurrencies as financial instruments.

The chairman says he will raise the issue in thce upcoming Financial Stability Council meeting to be held in Kiev.

“I think it is very timely to consider the recognizing of some crypto units as financial instruments during the upcoming meeting of the Financial Stability Council,” he said in Facebook post.

There was need to develop guidelines for the sector, he added. Timur struck a rather positive note saying the sector could revolutionise the financial industry.

“The point of no return is already in the past. The crypto industry is becoming an integral part of economic and financial relations,” he said.

Support from the Cyber Police

The cyber police has in the past voiced its support for cryptocurrencies. Head of the Ukrainian Cyber Police Department Serhiy Demediuk said it was necessary to establish the rules governing cryptocurrency exchanges and other transaction points.

Ukraine is one of the most vibrant centres for cryptocurrency trading but like many others, it lags behind in terms of regulation. Cryptocurrency mining was only legalised in March 2018.

National Security and Defence Chief Oleksandr Turchynov has previously said that cryptocurrencies pose a threat to national security and the economy when he announced plans for a working group to develop regulations back in January.

“Given the rapid development of cryptocurrencies in the world, this issue cannot be left out of the state’s attention,” he said according to Financial Times.

Ukraine has for a long time been a target of serious cyber attacks that have sometimes taken down government websites.

Last weekend, Thailand gazetted cryptocurrency laws that require sellers to register with the Securities Exchange Commission failure to which they will be fined about USD 15,000 or twice the amount sold illegally.

Japan and South Korea have some of the most advanced cryptocurrency regulations in the world.