Today, November 30, the regulators of the Ukrainian financial market, namely National Bank of Ukraine, National Securities and Stock Market Commission, and National Commission, responsible for financial services regulation, have declared a joint announcement. It concerns their position about cryptocurrency regulation in the world and Ukraine and risks associated with cryptocurrency operations.
The statement emphasizes that cryptocurrencies don’t fall under the definition of any notions that are regulated by the current norms of legislation in Ukraine. They are neither cash funds nor securities, nor quasi-cash. That is why they cannot be controlled right now. This position of NBU was shortly covered by the deputy head of NBU Oleg Churii during the conference Ukrainian Financial Forum 2017 as far as in September.
At the moment, the representatives of Ukrainian financial regulators cooperate with the foreign colleagues to work out the mechanisms of cryptocurrency market regulation. Although two drafts of regulatory laws had been introduced in the Verkhovna Rada in October, they didn’t receive support from the National Securities and Stock Market Commission.
Today, the NBU deputy head Oleg Churii stated:
We think that the process of amending Ukrainian legislation should not be hasty since there is no single and unified position regarding cryptocurrencies in the world. It is interpreted differently by different regulators. Sometimes regulators consider it as a payment instrument, or intangible asset, etc. So the approach to the legislative regulation should be very cautious and well-grounded.
At present, three financial regulators of Ukraine have created a workgroup that will establish the legal regulation of the status of cryptocurrency market in Ukraine. Its goal is to protect the rights of the market members and investors, to clarify the questions of financial monitoring, taxation, identification of market members, etc.
The Head of the National Securities and Stock Market Commission Timur Khromaev commented:
Today, the world forms its vision of regulation and control over this activity as well. It is quite versatile. We, together with our colleagues from the National Bank and other institutions and commission work with foreign and European regulators on specific approaches to this activity.
Along with this, Oleg Churii has tried to appease the representatives of IT sphere by emphasizing that the legislative regulation of cryptocurrencies in Ukraine should in no way affect the development of IT technologies and cause the attrition of the qualified personnel abroad.
Also, the regulators’ statement warns citizens against various risks associated with cryptocurrency investments. Among them: the possibility of money loss because of stealing via cyber-attacks, the cases of frauds, considerable price fluctuations, and adjacent risks, etc. As Timur Khromaev commented:
As for the current dangers of cryptocurrency investments, they are quite substantial, because Ukrainian legislation has no such recognition, no infrastructure and any guarantee for investors. Significant volatility, it is confirmed by all indexes on the platforms where these instruments are traded all over the world.
In that context, the head of National Commission has expressed doubts that cryptocurrencies will be recognized as “means of accumulation,” and warned investors against the possible risks:
… savings and recognition of these assets as means of accumulation is quite doubtful. So we admonish and emphasize that investing in these assets is a personal risk of those investors who want to do it.
The announcement of the financial regulators of Ukraine shows that they have taken a moderate position regarding the cryptocurrencies, and don’t want to make any quick movements concerning their regulation.
Below one can find a record of the press-briefing of the financial regulators on the legal status of cryptocurrencies in Ukraine.