At a meeting of the Financial Stability Council, Ukrainian lawmakers presented a new regulatory model for the crypto market, which involves the distribution of functions between the National Securities and Stock Market Commission (NCFM) and the National Bank of Ukraine (NBU).
This is reported by Finway
According to this model, the NCFM will oversee most market participants and tokens that do not fall under the category of electronic money (EMT). This means that the commission will be responsible for licensing crypto asset service providers (CASP), regulating the issuance and circulation of stablecoins, as well as establishing disclosure requirements to protect consumer rights.
Regulatory Functions of the NBU and NCFM
The NBU, in turn, will be responsible for licensing and monitoring the activities of EMT token issuers, as well as supervising CASPs that convert crypto assets into fiat currencies. The proposed model will ensure effective cooperation between the two regulators, which, in turn, will contribute to the stability of the financial system.
The document also states that the NCFM is committed to:
- overseeing the issuance and circulation of tokens, excluding EMT;
- monitoring the activities of issuers of tokens linked to other assets (ART);
- conducting oversight of CASPs without converting crypto assets into fiat;
- ensuring the prevention of market abuses concerning tokens, excluding EMT.
Prospects for Legalizing Crypto Assets in Ukraine
The National Bank of Ukraine will take on the following functions:
- oversight of the issuance and trading of EMT tokens;
- monitoring the activities of EMT issuers;
- supervision of CASPs engaged in the exchange of crypto assets for fiat;
- preventing abuses in the EMT sector;
- establishing requirements for conducting transactions involving crypto asset trading for fiat.
Thus, the licensing of ART issuers will be carried out by the NCFM, while the NBU will be responsible for EMT. Furthermore, regulators are expected to collaborate closely, particularly by exchanging data.
It is worth noting that earlier the NCFM presented a matrix for the taxation of crypto assets. Meanwhile, the draft law proposing amendments to the Tax Code of Ukraine is still under development. As predicted by MP Danilo Hetmantsev, the legalization of crypto assets in Ukraine is expected to occur in the first or second quarter of 2025, with taxation implemented under a model similar to that of securities taxation.