Rigid regulation of cryptocurrency is inadvisable – Ukraine’s National Securities and Stock Market Commission

This was reported by the Commission’s press service.

"Having considered the draft laws on regulation of cryptocurrency turnover, which were submitted for consideration to the Verkhovna Rada of Ukraine, the National Commission for Securities and Stock Market of Ukraine cannot support them in the current version," the statement reads.

The Commission insists on finalization of the bills, taking into account the following comments: “the use of term ‘cryptocurrency’ is unjustified in the legislation as this concept is the result of financial engineering and is not a currency, therefore we consider it more expedient to use the term ‘cryptounit.’ The National Commission for Securities and Stock Market of Ukraine also believes that the legal status of cryptocurrency differs in developed countries and usually the cryptocurrency is viewed as a financial instrument, investment asset, less often a commodity. It is this definition that we consider the most acceptable.

In addition, the rigid regulation proposed by the draft laws is "inadvisable, since at the present stage (global uncertainty concerning regulation of the cryptocurrency market) the regulation should be based on principles and consist of introducing a general ‘legalization’ by the financial regulator for a particular cryptounit, based on the nature and number of parties to transactions made with it, its accounting systems."

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