Cryptocurrencies Should Be Recognized As Financial Instruments – Ukrainian Securities Regulator

News, Regulation | May 10, 2018 By:

Timur Khromaev, the chairman of the National Securities and Stock Market Commission (SSMCS) of Ukraine, said that cryptocurrencies should be recognized as financial instruments.

In a Facebook post, Khromaev said that the crypto industry has matured significantly over the course of the past three years, causing the crypto market to become an “integral part of economic and financial relations.” He said it is important for regulators to recognize and regulate them.

“The point of no return is already in the past. The crypto industry is becoming an integral part of economic and financial relations,” Khromayev said. “I think it is very timely to consider the recognizing of some crypto units as financial instruments during the upcoming meeting of the Financial Stability Council (FSC).”

Khromaev also insisted that the FSC should lay out approaches to regulating crypto-related activities and initiate corresponding legislative procedures. He said cryptocurrencies should be considered within existing legal frameworks, “based on principle and substance, not form.”

The SSMCS commissioner thinks that the international community is far from adopting common rules and regulations for cryptocurrencies. That’s why he believes that regulations will be defined on a national level.

In January of this year, Sergey Demediuk, head of the Cyber Police Department of Ukraine, said that it is necessary to regulate, at a legislative level, all matters pertaining to the use of cryptocurrencies. He said the current law needs to be amended in order to tax crypto-related transactions, and the rules of operating crypto exchanges have to be determined.