“We are in favor of the reasonable legalization of the virtual asset market”, – Yurii Boiko, the Commissioner of the NSSMC

The principles of functioning, synergy of the capital market and virtual assets, prospects of entry into force of the Law and other issues were discussed by the Commissioners of the NSSMC (the National Securities and Stock Market Commission), experts and market participants at the Blockchain & Bitcoin Conference.

Speaking of who can become the regulator of the virtual assets market, the Commissioner Yurii Boiko noted: “The international practice suggests that regulators of trade and turnover of virtual assets are often the regulators of financial markets. This is because some virtual assets by its economic character contain the signs specific for the financial instruments. Accordingly, the regulation of the emission procedures of such types of virtual assets should be carried out by the regulators of financial markets. We are ready to cooperate in this part with the Ministry of Digital Transformation.”

The panelists have concurred in the opinion that Ukraine is not called Mecca for those who work with virtual assets for nothing. At the same time, this market is currently “grey”. Therefore, the draft Law “On Virtual Assets” will be a truly progressive step for regulation of this sector.

“The legalization and effective protection of investors’ interests on the virtual asset market is what the market needs itself. We see the synergy of capital markets and virtual assets. In particular, the investment funds have been already interested in the opportunity to invest in this instrument,” focused Mr. Boiko. 

Maksym Libanov, the Commissioner of the NSSMC, for his part, said that the Law is only the first step. “Together with the NBU and the Ministry of Digital Transformation of Ukraine the NSSMC’s next task is to prepare the entire regulatory framework, which will determine the aspects of turnover and accounting of virtual assets, etc. We all have a great responsibility for how to implement it. Moreover, all of us have to develop the equal conditions for each market participant and protect investors,” he emphasized.

The Commissioners added that they expect to revote and sign the specialized Law by the President this year. But it will not come into force until the Parliament adopts the amendments to the Tax Code. “It is not yet known when all necessary regulations come into force. But the fact that this, undoubtedly, will be a reasonable approach to work with the virtual asset market.” summed up Yurii Boiko.