Most governments across the world now have a stance on cryptocurrency regulations in one direction or another. News has recently broken that the Ukrainian government is ready to get on board to support the implementation of new crypto regulations that will involve licensing transaction participants and the disclosure of certain information.
Eastern Europe has been a hotbed for ICO startups and is definitely one of the most accepting regions in the world for crypto. It seems that the Ukrainian government is looking to regulate digital currency transactions with its new cryptocurrency regulations.
Conceptualizing Ukrainian cryptocurrency regulations
Living in Eastern Europe is great if you are a crypto user. Just a few days ago, Samsung stores across Baltic states began accepting payment for electronics in crypto. On July 20, the head of The National Securities and Stock Market Commission (NCSSM), Timur Khromaev, reported in a Facebook post that the Financial Stability Council of Ukraine is currently conceptualizing new cryptocurrency regulations to target crypto transactions.
Khromaev had already detailed in a previous post that talks will be conducted at the next Financial Stability Board meeting that discussions would be held to talk about recognizing crypto as a financial instrument so as to kick-start legal proceedings.
The concept of the regulations would be to demand category recognition of cryptography and the use of tokens as financial instruments. The supposed cryptocurrency regulations also include licensing crypto transactions and “disclosure of certain information”.
Ukraine Government taking important steps
The main governing bodies on board to help regulate the Ukrainian crypto industry and recognize tokens are The National Bank of Ukraine (NBU), the National Commission for State Regulation of Financial Services Market, The State Financial Monitoring and the Minister of Finance.
Khromaev went onto say that these are “important steps” for the Ukrainian government with this move towards creating a consensus with financial regulators and government bodies.
In response to the supposed cryptocurrency regulations, a National Securities spokesperson said that it is important for “Kryptonian to form a legislative and regulatory framework that will ensure the transparency and quality of the relations between investors and market participants with cryptic currencies.”
Earlier this year, Khromaev talked about how important it was that cryptocurrency regulations play a major part in the economic and financial relations of the nation moving forward.
As we are seeing right across the crypto world, regulations are controversial with the community who fear that anonymity will be a thing of the past and that the decentralized nature of the industry is threatened by overzealous cryptocurrency regulations.
Khromaev’s posts were met with angst from some quarters of the Ukrainian crypto industry who believe this is just a ruse by the government to rip taxes, sell licenses and to define who and where people can trade crypto in Ukraine.
The ongoing double edge sword of cryptocurrency regulations is a contentious issue, but we can expect to see ongoing attempts by governments and bodies to regulate and clamp down on the industry, which is good for some people and not so great for others.