Crypto Working Group Formed By Ukraine’s Financial Regulators

Investing, News, Regulation | January 12, 2018 By:

Ukraine’s financial regulators are forming a working group to look into cryptocurrency regulation. The announcement was made during a recently held meeting of the National Cybersecurity Coordination Center.

During the meeting, National Security and Defense Council chief Oleksandr Turchynov said that a lack of regulation around cryptocurrencies constitutes a threat to Ukraine’s economy and security. He added that the development of the cryptocurrency market cannot be left out of the state’s attention.

The National Cyber Security Coordinating Center instructed relevant authorities to set up a working group in order to develop legal proposals for regulating cryptocurrencies.

The working group will be composed of officials from the National Bank of Ukraine, the Ministry of Finance, the National Securities and Stock Market Commission, the SSU, the National Police, the State Financial Monitoring Service, the State Fiscal Service and the State Service for Special Communications and Information Protection.

The group is tasked to “define the state regulator and the order of functioning of the cryptocurrency market; to establish the order of monitoring transactions with the use of cryptography and identification of subjects of cryptocurrency transactions; as well as to set up the procedure for taxation of income from transactions using cryptocurrencies in accordance with the requirements of Ukrainian legislation.”

Moreover, the authorities have been assigned to develop a mechanism for ensuring access of law enforcement bodies to the data of cryptocurrency exchanges. The group will also study whether it is appropriate to issue a central bank-backed cryptocurrency.

“The development and implementation of all these measures will also include boosting international cooperation to establish a comprehensive regulation of the cryptocurrencies circulation and to avoid the criminalization of this segment,” the release stated.

In Octeber, 2017, Konstantin Yarmolenko, advisor to the head of Ukraine’s State Agency for E-Governance, submitted a proposal for legislation containing regulatory guidelines for cryptocurrencies to the Ukrainian Parliament. The legislation calls for cryptocurrencies to be taxed as a kind of property. It also calls for the central bank to develop an operating procedure for cryptocurrency exchanges. The legislation has not yet been passed into law.