Ukrainian President Volodymyr Zelensky sent a draft cryptocurrency bill back to parliament earlier this week for further amendments. These changes aim to give the country’s securities regulator greater control over cryptocurrencies.
Zelensky wants the central bank to supervise
The President of Ukraine has rejected a cryptocurrency bill that would have recognized cryptocurrencies by law. He sent it back to the country’s parliament for amendments. The announcement of President Volodymyr Zelensky was posted on October 5. He demanded that the country’s securities commission, the National Commission on Securities and Stock Market, act as the crypto market regulator.
The requested change would make the agency the primary regulator for the crypto asset class. This is in contrast to a more partitioned approach that previously involved multiple regulators overseeing different aspects of the 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.
Under the new directive, licensing of brokers and other platforms will also be handled by securities regulators. The Ukrainian parliament will now discuss this issue and possibly rework the bill further. It original bill was first filed in June 2020, before passing a hearing in September 2021 and reaching President Zelensky’s desk.
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 do. In general, Ukraine’s potential new approach is more in line with the position of other countries.
Ukraine hopes to digitize its economy with a CBDC and cryptocurrencies, like many other smaller economic countries. There were reports that officials had visited El Salvador to learn how Bitcoin functions as legal tender. However, it is clear that this approach will not be adopted.
Matter of time before crypto regulations come into effect
Ukraine is just one of many countries that are implementing a broad cryptocurrency regulation framework. As the market has grown to tremendous value by 2021, governments have accepted that some legislation is needed.
Many countries are waiting for the United States to
The United States Securities and Exchange Commission (SEC) is in charge, with the aim of investor protection. Stablecoins are also seen as a potential threat, with the US Treasury Department focusing on that piece of regulation.
However, not all countries are so hospitable. China has completely banned cryptocurrencies again, although it has not had too much of an impact on the market. Most countries, such as South Korea and Japan, take a more conservative approach, focusing on taxation, investor protection and identity-related compliance requirements.