Ukrainian President Volodymyr Zelensky has sent a cryptocurrency legislative bill back to parliament for further amendments. The changes focus on handing the country’s securities regulator more control over cryptocurrencies.
The President of Ukraine has turned away a cryptocurrency bill that would have recognized cryptocurrencies by law, returning it to the country’s parliament for changes. The announcement from President Volodymyr Zelensky was posted on Oct 5, demanding that the country’s securities commission, National Commission on Securities and Stock Market act as a regulator for the crypto market.
The change requested would make the agency the main regulator for the crypto asset class, as opposed to a more partitioned approach previously that involved multiple regulators overseeing various aspects of regulation. In the previous version, the Ministry of Digital Transformation would have regulated cryptocurrencies, while the securities commission would have focused on assets backed by securities.
The licensing of brokers and other platforms will also be handled by the securities regulators, according to the new directive. The Ukrainian parliament will now discuss this matter and possibly rework the bill further. The original bill was first put forward in June 2020, before passing a hearing in September 2021 and reaching the desk of President Zelensky.
As for the country’s central bank digital currency, Zelensky has asked the central bank, the National Bank of Ukraine, to oversee its development. This is similar to what most other countries are doing, and generally speaking, Ukraine’s potential new approach is more in line with the stance of other countries.
Ukraine hopes to digitize its economy with a CBDC and cryptocurrencies, like many other smaller economic nations. There were reports that officials had visited El Salvador to learn about how bitcoin functions as legal tender, but it’s clear that this approach will not be supported.
A matter of time before crypto regulations take hold
Ukraine is only one of many nations implementing a broad framework for cryptocurrency regulation. As the market has grown to a tremendous value in 2021, governments have accepted that some legislation is necessary.
Many countries are waiting on the United States to make a decision, and the latter’s officials have heavily beaten the drum of regulation in recent months. It is only a matter of time before the U.S. government and its various regulators implement regulation for the market.
The United States Securities and Exchange Commission (SEC) is leading the charge, with its mantra being investor protection. Stablecoins have also been noted as a potential threat, with the U.S. Treasury focusing on that piece of regulation.
Not all countries are so welcoming, however. China has completely banned cryptocurrencies yet again, though it has not had too much of an impact on the market. Most nations, like South Korea and Japan, are taking a more restrained approach, focusing on taxation, investor protection, and identity-related compliance requirements.