Ukrainian Financial Regulator to Consider Cryptocurrency as a Financial Instrument

Cryptocurrency trading could become legal in Ukraine

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The head of Ukrainian National Securities and Stock Market Commission Timur Khromaev has announced that they are considering recognizing digital currencies as financial instruments. Khromaev made the announcement through a Facebook post after the International Organization of Securities Commissions annual conference on crypto and ICOs.

Khromaev believes that the cryptocurrency industry has grown significantly over the last three years making the crypto market an integral part of economic and financial relations. The Commissioner highlighted the importance of cryptocurrency legal recognition and adapting the position of financial regulators.

Khromaev suggested that cryptocurrency assets and operations should be considered within existing legal frameworks on the basis of the principle behind the asset. He also added that new regulations should consider the dynamic nature of cryptocurrencies. Adding that the rules and regulations for digital currencies will be defined on a national level because it was still a long way off the international standards.

Ukraine has had mixed reactions on how to treat digital currencies in the past particularly the country’s central bank which had issued a statement in August 2017 saying that no other currency except the national one can be issued or used as a form of payment in the country. The Ukrainian bank later reported that the High Council of Experts had approved several proposals to determine the legal status of cryptocurrency.

At the start of this year, the Central bank stated that it was thinking of starting a digital version of its national currency. They said they had formed a team to look into blockchain technology which is the underlying technology of the digital currencies.

Venezuela became the first country to launch their own digital currency with several other countries planning to go the same direction. The only problem with national cryptocurrencies is adoption because many investors are using digital currencies to avoid their government’s control because they are directly controlling their finances.

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