The President of Ukraine, known as a crypto proponent, calls for a revision of Parliament’s proposal to regulate cryptocurrencies.
Uiuiui – that was unexpected. After the law “On Virtual Assets” (Draft Law No. 3637) passed in parliament a few weeks ago, all that was missing was the signature of the President. As a well-known proponent of cryptocurrencies, it was considered a safe bet.
Surprisingly, Vlodymyr Zelensky returned the law on October 5th. He criticized the proposal on his table as follows:
The provisions of the law do not create the full legal mechanisms necessary for its implementation … [Sie] do not meet the constitutional requirements for legal recognition as part of the rule of law principle (Article 8 of the Constitution of Ukraine), …
[Die Bestimmungen] also do not provide understandable and transparent conditions for participants in the virtual asset market and investors, which will not contribute to adequate protection of their rights.Vlodymyr Zelensky
No new position, but more control by the National Bank
In Zelensky’s eyes, the responsibilities with regard to cryptocurrencies must be determined differently.
So far, the law provided for a trio of regulators. This should be from the National Commission on Securities and the Stock Market and the Ministry of Digital Transformation are formed. In addition, Parliament planned to create another central office specifically for crypto currencies. That new administrative body would, however, draw on substantial funds from the state budget. That’s why the President did it now short Process.
He beats before that the National Commission on Securities and the Stock Market becomes the main regulatory body. In the future, you should also make the decision on the approval of new crypto exchanges and transactions. In addition, he recommends the National Bank of Ukraine. The President’s proposal is now deleting specific passages, proposing changes and defining the tasks of these two bodies.
In principle, the content remains the same
Furthermore, cryptocurrencies should remain defined as intangible assets that are expressed in electronic data. The rights and obligations for market participants and the principles of state policy within the meaning of the Ukrainian constitution are also further elaborated. In addition, the criteria that companies need to set up in Ukraine should remain in place.
With Zelensky’s demands, it is at least clear that Ukrainian freedom from crypto will not continue to exist to the extent initially assumed. Because the crypto central office is no longer available, it can also be assumed that competencies could be lost and the infrastructure and investments required could be withheld. In contrast to Russia and China, Ukraine continues to be crypto-friendly. This may also be due to the fact that many officials in the country are owners of bulging Bitcoin wallets. Allegedly, Ukraine is one of the few countries in which Bitcoin is in public hands.
