The Ukrainian Parliament (also known as Verkhovna Rada or Supreme Council of Ukraine) is carrying out a bill in which proposes to regulate the cryptocurrency market and classify them as financial assets. If approved, the proposal could be adopted at the end of 2018 or the beginning of 2019.
According to the information provided by a local media, Timur Khromaev, head of the National Commission of Securities and Stock Exchanges of Ukraine (NSSMC) has commented that the proposed law has taken as example the legislative framework model of countries such as Malta, Gibraltar and Switzerland, where it is stipulated that cryptocurrencies are assets, but can not be considered as payment methods because they constitute financial instruments similar to stocks, bonds and promissory notes.
Khromaev further noted that the intention of the proposal is to grant recognition to cryptocurrencies as financial assets in order to allow citizens and residents to use it as a decentralized tool for financial transactions, create favorable conditions for the digital assets market formation and increase the opportunities to carry out new projects.
According to studies, 13% of Ukrainian residents have some type of cryptocurrency like Bitcoin and Ether and the total estimated daily transactions is about $2 million. Such amounts can be attractive for governments like Ukraine given that once regulated, investors and users can perform operations in a framework protected by the law, ensuring a greater security and at the same time, proving a new source of income to the government thanks to the taxes associated with cryptocurrency activities.
The Ukrainian initiative marks just another chapter in this book, with other countries such as the United States, Spain and Malta that are also beginning to regulate the market of cryptocurrencies to create an environment of opportunities and security. Flexible regulatory positions such as the Ukrainian can help many fintech initiatives and startups (especially those financed by ICOs) to have a defined regulatory framework, allowing national and foreign companies to continue bringing technological advances and development in the financial environment.