Ukraine’s president, known as a crypto advocate, calls for a review of parliament’s proposal to regulate cryptocurrencies.
Uiuiui – this was unexpected. After the law “On Virtual Assets” (Bill No. 3637) passed by the Parliament a few weeks ago, the only thing missing was the President’s signature. As a known proponent of cryptocurrencies, this was considered a sure thing.
Surprisingly, Vlodymyr Zelensky returned the bill on October 5. In doing so, he criticized the proposal on his table following:
The provisions of the law do not create the full legal mechanisms necessary for its implementation, … [They] do not meet the constitutional requirements for legal recognition as part of the principle of the rule of law (Article 8 of the Constitution of Ukraine), …
also do not provide for understandable and transparent conditions for participants in the virtual assets market and investors, which will not contribute to adequate protection of their rights. Vlodymyr Zelensky
No new body, but more control by the National Bank
In Zelensky’s eyes, first and foremost, the responsibilities regarding cryptocurrencies must be determined differently.
So far, the law has provided for a trio of regulators. This was to be formed by the National Commission for Securities and the Stock Market and the Ministry for Digital Transformation. In addition, the parliament planned to create another central body specifically for cryptocurrencies. However, this new administrative body would require considerable funds from the national budget. The president has now made short work of this.
He proposes that the National Securities and Stock Market Commission become the main regulatory body. In the future, it should also make the decision on the approvals of new crypto exchanges and transactions. In addition, he recommends the National Bank of Ukraine as the supervising and controlling body. In doing so, the President’s proposal now deletes specific passages, proposes amendments and defines the tasks of these two bodies.
Contents remain the same in principle
Furthermore, cryptocurrencies are to remain defined as intangible assets expressed in electronic data. Also, the rights and obligations for market participants:inside and the principles of state policy in terms of the Ukrainian Constitution will be further elaborated. In addition, the criteria already developed for companies to establish themselves in Ukraine are to remain in place.
With Zelensky’s demands, it is at least clear that Ukrainian crypto-freedom will not be in the initially presumed will remain in place. The elimination of the crypto-centre is also likely to result in the loss of skills and the withholding of necessary infrastructure and investment. Unlike Russia and China, however, Ukraine remains crypto-friendly. This may also be due to the fact that many of the country’s officials are owners of bulging Bitcoin wallets. Reportedly, this makes Ukraine one of the few countries where Bitcoin is in public hands.