NSDC of Ukraine Is Worried About Lack of Control on Cryptocurrency Market

Published on 11 Jan. 2018

Today, January 11, the National Coordination Center on Cyber Security has raised the question of the cryptocurrency market once again. It was initiated by the secretary of NSDC Oleksandr Turchynov, states the personal website of the official.

The heads of the National Bank of Ukraine, SSU, and National Policy have also expressed concern about the absence of outer and inner control over the cryptocurrency circulation.

Oleksandr Turchynov said that further dismissal of the country from this question and absence of the legal regulation, normative, and legislative bases would “create a threat to the economy and security of the state.”

Considering the rapid development of the cryptocurrencies in the world, this question cannot stay out of the state’s sight,

- emphasized NSDC secretary.

The National Coordination Center on Cyber Security has requested creating a workgroup to develop the normative and legal suggestions to regulate this question. The workgroup shall include the representatives of NBU, Ministry of Finance, SSU, National Commission on Securities and Stock Market, National Police, State Financial Monitoring Service, State Fiscal Service, and State Service for Special Communications and Information Protection.

It is to be reminded that the workgroup of the representatives of the financial market regulators has been already working on the cryptocurrency status at the end of November, and has published its report. It says, in particular, that cryptocurrencies in Ukraine cannot be regulated at the moment since they do not fall under any offered definition.

They are neither cash funds, nor securities, nor cash equivalent. That is why they cannot be regulated at the moment,

- states the report.

On the today’s meeting, the Coordination Center has instructed a workgroup to define a state regulator and functioning procedure for the cryptocurrency market, the process for cryptocurrency transactions monitoring and identification of the cryptocurrency operations subjects.

Among the tasks for the workgroup, it is also the taxation procedure for the revenues from the cryptocurrency operations due to the Ukrainian legislation.

Once again, NBU has sounded that it investigates the sutability of creating the state cryptocurrency – such suggestion was offered last year in summer.

Besides this, the members of the meeting suggested creating the mechanism of providing access for law enforcement agencies to the cryptocurrency exchanges data. Exchanges will have to keep the information about all transactions during the period defined by the legislation for the financial organizations and provide the information about the client on the reasoned request.

The development and implementation of all measures presuppose an international cooperation for the complex regulation of the cryptocurrencies and avoidance of criminalization of the segment.


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