Ukraine May Change Cryptocurrency Market Regulator
Date: 2024-12-23 Author: Gabriel Deangelo Categories: IN WORLD
The development of updated legislation on virtual assets in Ukraine, originally scheduled for completion in December 2024, has been postponed until the end of February 2025. The National Bank of Ukraine (NBU) and the National Securities and Stock Market Commission (NSSCMC) remain responsible for work on the regulatory document.
The International Monetary Fund (IMF) noted that the new legislation will comply with international standards, take into account the country's economic priorities and reduce risks to financial stability.
A possible change in the main regulator of the cryptocurrency market is expected. In January 2025, it is planned to sign a Memorandum of Understanding, which will determine the mechanisms of interaction between the NBU and the NSCMC. As emphasized by the IMF, the final distribution of roles between the regulators will be agreed upon with the Financial Stability Board and the fund.
Verkhovna Rada deputy Yaroslav Zheleznyak expressed the opinion that due to the current difficulties in the work of the National Securities and Stock Market Commission, the role of the main regulator will likely pass to the NBU. However, the NBU previously ruled out the possibility of recognizing cryptocurrencies as legal tender in the country.
During the sixth revision of the Extended Fund Facility for Ukraine, the IMF approved the allocation of the next tranche in the amount of about $1.1 billion.
It is worth recalling that the law "On Virtual Assets", adopted back in 2021, did not enter into force due to the lack of tax regulation of transactions with cryptocurrencies. The new bill proposes the abolition of tax benefits for transactions with bitcoin and other digital assets, and its adoption is expected in the first half of 2025.
The development of legislation to regulate the crypto market is included in the National Revenue Strategy of Ukraine for 2024-2030 and in the reform plan, the total cost of which is €50 billion.
