NBU: New Law for Cryptocurrency Regulation Is Needed

Published on 07 Feb. 2018
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Today, February 7, a roundtable meeting concerning cryptocurrency was carried out. During it, the representative of the National Bank of Ukraine, the head of the department’s projects on open markets Emal Bakhtari spoke out in support of creation of the joined workgroup of regulators and market members for the development of the new law draft for the regulation of cryptocurrency and mining in Ukraine. The information was reported by Ukrinform.

We want to formulate a document together, with the participation of key state institutions, which have to take part in it, and market members, because they are better acquainted with the technology and the definition of one or the other notion… We will be creating a mutual document, and we will try our best to make the government confirm it,

- said Bakhtari.

Last year, several projects were introduced, but none of them was supported on the high level. Emal Bakhtari explained that existing law projects are incomplete and have many remarks from the financial regulators. NBU offers to write a fundamentally new document.

We need a new document that will clearly define the status of mining, cryptocurrencies, virtual currencies in general, ICO, and blockchain technology,

- highlighted Bakhtari.

The NBU representative also emphasized that the government should support blockchain technology and smart contracts, and not interfere with their development. The uncertainty of the regulative norms on the legislative level creates ambiguity that we must overcome.

As far as November last year, 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, made a joint announcement on their position about cryptocurrency regulation in the world and Ukraine, and risks, connected with the cryptocurrency operations. The statement emphasized that cryptocurrencies didn’t fall under the definition of any notions that were regulated by the current norms of legislation in Ukraine. They were neither cash funds nor securities, nor quasi-cash. Therefore, they couldn’t be regulated at that moment.

Today, expressing his mind, the NBU representative has mentioned that this should be done “as soon as possible, urgently,” so that no one accuses the regulator that it is delaying the process. 

In January, NSDC assigned the appropriate government bodies to create a workgroup, including the members of NBU, Ministry of Finance, National Commission on Securities and Stock Market of Ukraine, SSU, National Police of Ukraine, National Service on Financial Monitoring of Ukraine, State fiscal service, and State Service for Special Communications and Information Protection of Ukraine, to work out the normative and legal offers on cryptocurrency regulation.
One should remind that Ukraine doesn’t yet have any regulative document on the status of cryptocurrencies, ICO, mining, etc. The question was raised many times by the Verkhovna Rada deputies, financiers, and other officials, not to mention the interested citizens who even created a petition with the request on launching the national cryptocurrency and carrying out its ICO.

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