The Ukrainian Parliament received two separate bills within the past month which address the increasing need for a regulatory framework for cryptocurrencies within the country. The first bill, submitted on October 6th, as well as a new bill titled “On the stimulation of the market of cryptocurrencies and their derivatives in Ukraine” Bill No. 7183-1, was submitted to the Ukrainian Parliament last week.
According to the head of the Parliamentary Committee on Financial Policy and Banking, Serhiy Rybalka, the new bills propose that cryptocurrencies will enjoy the same recognition as other financial assets. Rybalka was quoted in The Financial Club, stating that there was no use in reinventing the wheel and new rules to go along with it. According to Rybalka, the most efficient model would be for pre-existing legislation to be applied to cryptocurrencies.
According to the Ain publication, the bill states that state bodies would take on the responsibility of monitoring all cryptocurrency exchanges. Every cryptocurrency exchange service operating within the Ukraine will be required to obtain a license. After obtaining a license, a cryptocurrency exchange service will be able to provide services for both Ukrainian citizens and non-residents.
The latest bill also proposed reduced electricity tariffs, as well as a simple taxation system, in order to encourage and stimulate the cryptocurrency market. According to Rybalka, the bill does not propose any new taxation on cryptocurrency investments. However, the bill did propose a 2% exchanging fee when any cryptocurrency is exchanged for hryvnia, the national currency of Ukraine.
The bill proposed that the National Financial Services Commission should act as the primary regulating body of all cryptocurrency activities. This differs from the previous bill, which proposed that the National Bank of Ukraine (NBU) should take on this responsibility.
According to the head of Bitcoin Foundation Ukraine, Orlovksy Maxim, the second bill does include a working and legal definition of cryptocurrency derivatives, however, neither bill included proposals regarding the regulation of Initial Coin Offerings (ICOs). The first bill submitted also fails to address AML and KYC procedures for cryptocurrency transactions. The second bill states that AML and KYC procedures should be determined by the central financial regulator and that they should form part of the licensing requirements.
Despite the absence of a working regulatory framework in the Ukraine, all cryptocurrency activities are still legal. The Ukrainian Minister of Finance, Oleksandr Danylyuk, recently confirmed via Facebook that his department is currently working closely with the NBU, and other financial institutions, in order to establish a good regulatory framework.
The Minister further acknowledged several issues that the Ministry would have to face in order to create an efficient regulatory framework. He stated that Ukraine should first monitor world trends, and above all not miss a chance to participate in this new innovative financial technology.
According to the head of the Parliamentary Committee on Financial Policy and Banking, Serhiy Rybalka, the new bills propose that cryptocurrencies will enjoy the same recognition as other financial assets. Rybalka was quoted in The Financial Club, stating that there was no use in reinventing the wheel and new rules to go along with it. According to Rybalka, the most efficient model would be for pre-existing legislation to be applied to cryptocurrencies.
According to the Ain publication, the bill states that state bodies would take on the responsibility of monitoring all cryptocurrency exchanges. Every cryptocurrency exchange service operating within the Ukraine will be required to obtain a license. After obtaining a license, a cryptocurrency exchange service will be able to provide services for both Ukrainian citizens and non-residents.
The latest bill also proposed reduced electricity tariffs, as well as a simple taxation system, in order to encourage and stimulate the cryptocurrency market. According to Rybalka, the bill does not propose any new taxation on cryptocurrency investments. However, the bill did propose a 2% exchanging fee when any cryptocurrency is exchanged for hryvnia, the national currency of Ukraine.
The bill proposed that the National Financial Services Commission should act as the primary regulating body of all cryptocurrency activities. This differs from the previous bill, which proposed that the National Bank of Ukraine (NBU) should take on this responsibility.
According to the head of Bitcoin Foundation Ukraine, Orlovksy Maxim, the second bill does include a working and legal definition of cryptocurrency derivatives, however, neither bill included proposals regarding the regulation of Initial Coin Offerings (ICOs). The first bill submitted also fails to address AML and KYC procedures for cryptocurrency transactions. The second bill states that AML and KYC procedures should be determined by the central financial regulator and that they should form part of the licensing requirements.
Despite the absence of a working regulatory framework in the Ukraine, all cryptocurrency activities are still legal. The Ukrainian Minister of Finance, Oleksandr Danylyuk, recently confirmed via Facebook that his department is currently working closely with the NBU, and other financial institutions, in order to establish a good regulatory framework.
The Minister further acknowledged several issues that the Ministry would have to face in order to create an efficient regulatory framework. He stated that Ukraine should first monitor world trends, and above all not miss a chance to participate in this new innovative financial technology.