Ukraine is looking to take its relationship with cryptocurrency to the next level with a plan in the works for the classification, regulation, and implementation of digital assets.
Let’s Make It Official
Nearly all of the nations of the world seem to be currently locked into a cryptocurrency and blockchain regulatory stalemate while waiting for the first to jump in to see if it sinks or swims.
Ukraine, meanwhile, is looking to be one of those first adopters — revealing the outlines of its plan to implement state-backed regulations on the holding and transacting of digital assets.
In July of this year, Timur Khromaev, Chairman of the National Securities and Stock Market Commission (NSSMC) of Ukraine, made a post on Facebook showing his and the Financial Stability Council’s (FNS) support in favor of regulating cryptocurrency, stating:
This is the first important step which will foster consensus between government agencies and financial regulators. It shows that the Ukrainian Parliament is ready to cooperate with the cryptocurrency market and define regulatory terms which will secure transparency and enhance the quality of partnership between investors and the crypto sphere.
Getting After It
In the announcement, the ministry laid out a plan which it hopes to implement in two phases — ultimately coming into place by 2021.
In the first stage, Ukraine hopes to gather more information in order to better clarify and optimize its current rule, and better design regulations in the future.
The second stage is set to take off in 2020 and addresses the need for monitoring and organizing means of recognition for entities providing custodial services for investors, as well as “the development of special legislative acts on the regulation of the use of virtual assets, smart contracts and tokens,” concerning Initial Coin Offerings (ICO) or Initial Token Offerings (ITO).
While the adoption of cryptocurrency in Ukraine has been ahead of the curve compared to many other parts of the world, there have been criticisms that the loosely-regulated currency is being used for things like tax fraud and even for funding extremist groups.
With transparent and mutually-beneficial regulations, the cryptocurrency space can flourish without being smothered by the government — and will also be free from the poison created by criminals and scam artists.
What are your thoughts on Ukraine’s move to officially legalize cryptocurrency? Let us know in the comments below!
Images courtesy of Facebook.