A roundtable meeting on cryptocurrency regulation took place in Kyiv, Ukraine. Oleksandr Shelest, IT expert, discussed the functioning of the cryptocurrency market in Ukraine, what rules can be implemented to it at the moment, and how the state bodies that should have been regulating the market behave.
Oleksandr Shelest says that the market members don’t violate anything since the state pretends there is no such market.
From 2014 to March 2018 there was a letter from the National Bank that stated that Bitcoin and other virtual currencies are cash equivalents, and operations with them were forbidden. But in March, the letter was canceled, and since then cryptocurrencies should be functioning according to the current legislation on Ukraine. As the analysis showed, from the current law, the cryptocurrencies are intangible products.
According to Oleksandr, no entities are registered so far; banks refuse to carry out any monetary transactions and serve the companies if the aim is cryptocurrency operations. This significantly restrains the market development.
Shelest mentioned that Ukraine, according to the research, is in the top-10 countries by the level of cryptocurrency use. But the problem is that this stays invisible for the state. In practice, the law projects are being developed, but right now one should go by the current legislation.
It’s the central position we are trying to prove – the current legislation allows carrying out the operations and fulfill the activities in the sphere of cryptocurrencies. The only thing the state bodies should do – implement the existing law.
The journalists of Hromadske radio asked Oleksandr Shelest whether it’s possible that there would be the full shift from the current monetary system to the use of cryptocurrencies. He answered that it’s impossible since cryptocurrencies are goods, and the payment of salary can be carried out in the monetary form only.
The expert also mentioned that there are some questions, or even problems for the government representatives, especially in Ukraine, because the use of cryptocurrencies almost entirely eliminates the possibility of corruption since one can track the way of every cryptocurrency from its creation to the end of its lifecycle.
On question is that an actual reason why the state pretends there’s no Bitcoin and other cryptocurrencies, Oleksandr Shelest answered:
It’s one of the existing opinions among the market members, but I believe it’s not the single reason, and there are also some technical limitations.