It all seems like cryptocurrencies are not only gaining ground around the world, they are also finally getting the validation they deserve as many governments and bank entities across the globe are starting to reconsider how they should treat this cutting-edge financial instrument.
The turn is now for Ukraine, a country that through the years has been showing a not-so-consistent opinion regarding cryptocurrencies, but the latest one promises to be the best.
Regulators from the country have recently announced they are going to reconsider the way they conceive virtual coins, and the best, the idea is to treat them as regular financial instruments.
Let’s find out more about how and why is this happening!
Ukraine perceptions on cryptocurrencies through the time
The way Ukraine, specifically the central bank, has defined and treated cryptocurrencies through the time has been very variable. For instance, back in August of 2017, the National Bank of Ukraine (NBU) released an order regarding cryptos establishing that besides the national currency no other could be accepted as a payment method.
However, later on in October, the same entity confirmed that its board of experts approved proposals to study the legal status of cryptocurrencies. And finally, on January of this year, it was known the entity was planning to release its own digital coin based on the national currency, the Hryvnia.
Before such a changing landscape, one may ask what the next step is? Well, it all points out to be a reconsideration of cryptocurrencies as they are conceived. According to a declaration made on May 8th, the Ukrainian National Securities and Stock Market Commission (SSMCS) is considering to treat cryptocurrencies as a regular financial instrument.
Regarding this, Timur Khromaev, head of the commision established that considering the evolution cryptocurrencies have shown in the last 3 years, it was time to start considering putting them in a legal frame as every time they are more significant in the financial and economic panorama.
The declarations were given through a publication on Facebook right after the ‘annual conference of the International Organization of Securities Commissions (IOSCO)’ took place to discuss about cryptocurrencies in the market and Initial Coin Offerings.
In the post, Khromaev implied that under the foundations of the encrypted assets and its operations, they should actually be treated using the current legal frameworks.
The same way, he established that both current and future regulations should decrease its severeness and acknowledge the nature of digital assets to adapt better to them as “the point of no return is in the past.”
Finally, it provides a very optimistic panorama for virtual coins in the country as they could be treated soon with the importance they deserve as a factual financial instrument.