Central Bank official: regulators are hindering the development of cryptocurrencies

Central Bank official: regulators are hindering the development of cryptocurrencies

Economics and regulation

An excessive number of regulatory agencies are interfering with the prospects of successful cryptocurrency development in Ukraine, according to a high-ranking representative of the country's central bank. What the sector needs instead are regulations and appropriate laws that allow it to grow, the banker insists.

Read also: Exchanges of cryptocurrencies Eye Russia for expansion despite sanctions

NBU urges banks to embrace innovation

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National Bank of Ukraine

Mikhail Vidyakin, who heads the important Department of Strategies and Reforms of the National Bank of Ukraine (NBU), believes that the main issues related to the legalization of digital resources are institutional in nature. There are too many regulators responsible for the supervision of the sector, while the cryptocurrencies are not yet regulated and defined in the Ukrainian law.

Speaking with the cryptic newsletter Let Know, Vidyakin said he prefers the rules that would give the encrypted market a chance for development. He also stressed that traditional banks should be open to the fintech sector, which provides a new delivery channel for financial services. The banker believes that the Kiev authorities should first reduce the number of regulatory agencies in charge of government control over cryptographic businesses and thus address the lack of regulations and legal definitions for financial innovations.

Vidyakin is not the first Ukrainian official to request the legalization and regulation of the cryptocurrencies of the country. Last January, the Ukrainian Minister of Justice Pavel Petrenko made similar recommendations. He insisted that "Bitcoin must be brought into the legal field".

The status of digital assists was also discussed at a meeting of the National Cyber ​​Security Coordination Center in Kiev. Its members expressed concern about "the uncontrolled circulation of cryptocurrencies in Ukraine". The secretary of the National Security Council Oleksandr Turchynov stressed that "the development of the cryptocurrency market can not be left unattended".

Crypto Rules for a long time expired

<img class = "alignright wp-image-272407 size-medium” title=”Central Bank official: regulators are hindering the development of cryptocurrencies” src=”https://news.bitcoin.com/wp-content/uploads/2019/01/shutterstock_537811042-300×200.jpg” alt=”Central Bank official: regulators hinder the development of cryptocurrencies "width =" 300 "height =" 200 "srcset =" https://news.bitcoin.com/wp-content/uploads/2019/01/shutterstock_537811042-300×200. jpg 300w, https://news.bitcoin.com/wp-content/uploads/2019/01/shutterstock_537811042-768×511.jpg 768w, https://news.bitcoin.com/wp-content/uploads/2019/01/ shutterstock_537811042 -696×463.jpg 696w, https://news.bitcoin.com/wp-content/uploads/2019/01/shutterstock_537811042-632×420.jpg 632w, https://news.bitcoin.com/wp-content/uploads/ 2019 /01/shutterstock_537811042.jpg 1000w "sizes =" (maximum width: 300px) 100vw, 300px”/>A series of draft laws aimed at regulating the cryptographic sector and tax relief proposals have been introduced in the Ukrainian parliament since autumn 2017. However, very little real progress has been made towards their adoption.

In October 2018 a new concept of regulation was announced. According to the document, Ukraine will fully legalize cryptocurrencies in two phases within the next three years. The legal status of cryptographic exchanges should be determined in 2019. Crypto wallet providers and custody platforms will be settled by 2021.

The new policy has been approved by the Financial Stability Council which includes representatives of the National Bank of Ukraine (NBU), the Ministry of Finance, the Deposit Guarantee Fund, the National Securities Commission and the Stock Exchange (NSSMC) and the national financial services market Commission. At least two of these institutions, the NSSMC and the NBU, will be in charge of direct supervision of the crypto industry.

A study published by USAID in December estimated that the Ukrainians exchange about 775 million dollars of cryptocurrency every year. The authors of the research entitled "Transformation of the financial sector" have suggested that digital currencies should be recognized as "currency currencies" and regulated like foreign fiat currencies.

What is your opinion on the role of regulators and on the future of cryptocurrencies in Ukraine? Share your thoughts in the comments section.

Images courtesy of Shutterstock.

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