Particular Cryptocurrencies May Be Recognized as Financial Instrument, Says Ukrainian Financial Regulator

Published on 09 May. 2018
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In Ukraine, some cryptocurrencies may receive a status of the financial instruments. Tymur Khromaiev, the head of the National Securities and Stock Exchanges Commission, revealed the information on his Facebook blog.

He’s taking part in the annual conference of The International Organization of Securities Commissions (IOSCO) which is happening right now, May 7-11 in Budapest. Tymur Khromaiev is visiting the meetings that are held for the representatives of the securities commissions. They discuss the issues concerning AI and machine learning, the regulation of cryptocurrencies and ICO, the potential of ETF as an asset class and the role of innovations. Khromaiev commented:

I believe that it will be very timely to discuss the issue of recognizing some of the cryptocurrencies as a financial instrument on the nearest session of the Financial Stability Board. We should formulate the approaches to admission the activities with them and start the appropriate procedures and legislative processes.

In particular, Tymur Khromaiev stated that some conclusions were drawn during the conference that the Ukrainian legislation could take into account.

To begin with, Khromaiev writes that the “point of no return” has been already passed, and crypto industry is becoming an inevitable part of economic and financial relations. So, it’s crucial for the financial regulators to solve and recognize the existing issues of defining the cryptocurrency status and the activity connected to them on the legislative level.

The head of the National Securities and Stock Exchanges Commission claims that crypto assets have to be considered within the existing rules, taking the sense not the form as the basis. And the new rules should be formulated taking into account the rapid growth dynamics of the industry.

Khromaiev’s opinion coincides with the one of Yevgen Stepaniuk, the head of the Administration on Financial Sector Reformation of the National Bank of Ukraine. On the international conference BlockchainUA in March, he suggested introducing similar rules for the operations with digital and traditional financial instruments to ensure their taxation and adherence to the standards of the financial monitoring, to avoid misuses on the market and the protection of the investors’ and consumers’ rights.

Also, Tymur Khromaiev mentioned that the international community is not ready for the unified rules.

We are far from the international standards, so the crypto norms and rules will be defined on the level of the national legislation,

- he wrote.

At the moment, the cryptocurrency industry is not regulated in Ukraine. But small steps have been already taken. In March, Stepan Kubiv, the minister of Economic Development and Trade, reported that the national committee approved the decision to complement the Ukrainian Industry Classification System (KVED) with the paragraph on cryptocurrency mining. 

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