People’s Deputy of Ukraine Alexei Mushak called upon the cryptocommunity to discuss the draft law on cryptocurrency market regulation.
The draft law “On application of the distributed ledger technology and the legal status of tokens and cryptocurrencies in Ukraine” is now publicly available online. According to Mushak, the document comprises the results of numerous meetings and discussions.
“The document is aimed at the creation of a transparent cryptocurrency market in Ukraine. It is also purposed for stimulating the use of blockchain technology in social spheres, such as health care and education, as well as preventing unsubstantiated criminal prosecutions of cryptocurrency holders by the law enforcement agencies,” – the introduction to the draft law reads.
In particular, the document defines such notions as “token”, “cryptocurrency”, “blockchain”, “smart contract”, “crypto exchange” and some others.
The draft law suggests to charge the National Securities and Stock Market Commission of Ukraine (SSMCS) with cryptocurrency and token market surveillance and regulation.
“The regulator’s competences include drafting and approval of the licensing conditions for professional cryptocurrency market players, as well as monitoring the compliance with legal and institutional framework of their activity and the reliability of the information they provide,” – the document specifies.
It is proposed to classify purchasing, selling and exchanging cryptocurrencies and tokens for national and foreign currencies and other financial assets as licensed types of activity.
Cryptocurrency exchanges and cryptocurrency exchange bureaus providing services for financial assets storage are subject to compulsory licensing. At the same time, the exchanges that are purely converting tokens and cryptocurrencies are exempt from licensing obligations, given their compliance with AML/KYC principles.
The operation of crypto-exchanges and exchangers acting as intermediaries between users in the part of storing financial assets must be licensed on a mandatory basis. In this case, exchanges that deal exclusively with the conversion between different types of tokens and crypto currency, are exempted from the obligation to license their activities provided they comply with AML / KYC principles.
It is worth noting that the document is currently open to comments and amendments. The final version of the draft law will be allegedly formulated within two weeks.
As reported earlier this month, the Head of SSMCS Timur Khomaev decided to bring the issue of recognizing cryptocurrencies as a financial instrument to the attention of the Ukrainian Financial Stability Council.