Cryptocurrencies' Complex Nature Causes Dilemma for Ukrainian Regulators

A joint statement between the Ukrainian central bank and the country’s top financial regulators shows that existing legal concepts do not apply to cryptocurrencies. For example, they cannot be recognized as money, legal tender, currency or securities.

Also read: ‘No Regulation Needed’ – Moscow Stock Exchange Plans to Trade Bitcoin Futures

Crypto Legal Status Dilemma

Cryptocurrencies' Complex Nature Causes Dilemma for Ukrainian RegulatorsUkraine is actively working on the regulatory framework for cryptocurrencies. The country’s top financial regulators, the National Bank of Ukraine (NBU), the National Securities and Stock Market Commission (NCSSM), and the National Commission for the Regulation of Financial Services Markets, jointly issued a statement regarding cryptocurrencies on Thursday.

They noted the lack of one single approach to determine the legal status of cryptocurrencies or their regulations among the regulators of the world’s leading countries. As for Ukraine, cryptocurrency does not fall under any existing legislation so it “cannot be recognized as money” or “as a currency or legal tender of a foreign state and has no monetary value,” the three financial authorities explained. In addition, cryptocurrency cannot be recognized as electronic money, valuable paper, or money surrogate. According to their statement:

Despite the existence of numerous uses of cryptocurrency in the world including as a measure of value, a means of exchange and accumulation, its complex legal nature does not allow it to be identified with any of the related concepts (money, currency, currency value, legal tender, electronic money, securities, money surrogate, etc.).

Ukraine’s Cryptocurrency Bills

Cryptocurrencies' Complex Nature Causes Dilemma for Ukrainian Regulators
Oleg Churiy.

There have already been three proposals for cryptocurrency regulations in Ukraine.

“We have already Read More Here