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Ukraine Government Shows Its Keenness on Crypto Currency

Ukraine Government Shows Its Keenness on Crypto Currency

The digital currency market has got a shot in the arm from the Ukraine government for its keenness in the sector. The government is ready to extend its support for the finalization and execution of regulations of virtual currency in the country. This included not only licensing of transaction participants and also relates to the disclosure of some data. The move meant that the nation is joining the list of countries that are encouraging the cryptocurrency market.

Hotbed for ICO

The development assumes significance since Eastern Europe is known as a big source for initial coin offerings (ICOs) startups. The region has been positive as far as the acceptance level of the digital coins is concerned compared to some other parts of the globe. The government is obviously not interested in losing the opportunities from the virtual asset sector that is growing slowly and steadily. Therefore, the establishment thinks that new regulations could streamline the cryptocurrency transactions rather than ignoring it altogether, cryptodisrupt.com reported.

Significantly, Samsung stores have started to accept digital currencies as a means of payment for electronics in Eastern Europe region a few days back. This suggested that the region is a strong supporter of the new age financial instrument. Another key development was that National Stock Securities and Stock Market Commission (NCSSM) head, Timur Khromaev, disclosed through a social media that the Financial Stability Council (FSC) is keen to conceptualize new regulations with a clear focus on transactions involving cryptos.

In his previous post too, Khromaev pointed out about the discussions being held at FSC board meeting meant to recognize digital coin as a kind of financial instrument. The aim is to enable kick-start legal proceedings. The focus is on recognizing the cryptography category and the use of cryptocurrency as a means of the financial instrument. The government is keen to make sure that framework covers disclosure of some data due to allegations of money laundering.

There is going to be three governing board that will engage in regulating and recognizing the digital currency sector. They are the State Financial Monitoring, the National Bank of Ukraine (NBU) and the National Commission for State Regulation of Financial Services Market apart from the Finance Minister. Khromaev thinks that the government is taking important steps in establishing a consensus with both government bodies and regulators of the financial market.

Transparency and Quality

Responding to the government moves, a spokesperson from a National Securities viewed that the regulations could ensure transparency and quality of the relations among market participants and investors. As far as Khromaev is concerned, he has been stressing the importance of regulations and the role it could play in financial and economic relations in the upcoming years. Therefore, his supporting the cryptocurrency market is nothing new.

At the same time, there some people, who believe that framing regulations are a trick to sell licenses and rip taxes apart from defining the scope of crypto trade. Also, at least a section of investors sees that the anonymity clause will not be there. In any case, regulations are much needed for a healthy environment to enable digital coin sector to mature it.

About the author

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Caterina Ferrara

Caterina is an Italy based ICO advisor and community manager. She has done her MA in Literature and believes that it is very important to convey our thoughts in an understandable and appropriate manner. She shares her knowledge regularly with our readers.

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