Oleksii Semeniuk: a draft law on virtual assets is nearly complete

The drafting of a law, which is intended to regulate the virtual asset market in Ukraine, is nearly complete. The document is currently undergoing the final stages of interagency coordination and review for compliance with EU standards. The regulatory framework, the distribution of powers among government agencies, and the key requirements for participants in the future legal market are already agreed upon.

Oleksii Semeniuk, Chairman of the National Securities and Stock Market Commission, spoke about this in an interview with the industry-focused media outlet Incrypted.

The market already exists — a law must establish the rules

According to Oleksii Semeniuk, virtual assets have already become part of the Ukrainian economy. People buy, sell, and safekeep digital assets, and Ukrainian teams create tech products for the global market. However, the lack of comprehensive regulation doesn’t allow the government to understand this sector fully, protect its participants, and create conditions for businesses to operate legally.

“The virtual asset market in Ukraine is not created by some law. It already exists. A law is bringing the market out of a state where the government knows nothing about it and individuals participating in the market have no protection,” emphasized the Chairman of the NSSMC.

Legislative regulation should ensure transparent rules for companies, protect users, and open up opportunities for the industry’s development within Ukrainian jurisdiction.

What is already agreed upon

The draft law sets out a framework for the division of powers between the NSSMC and the National Bank of Ukraine, a classification of virtual assets, approaches to licensing service providers, as well as requirements for financial monitoring, prudential supervision, and protection of client assets.

The draft law is currently in the final stages of interagency coordination and review for compliance with EU standards. Efforts are focused on ensuring that all its provisions form a coherent and balanced regulatory framework that is compatible with European Union law and adapted to Ukrainian conditions.

According to Oleksii Semeniuk, the final model should be clearly understood not only by the government, but first and foremost by the public and businesses. Market participants ought to know in advance what rules they will be operating under, what requirements they must meet, and how the government will protect customer rights.

The Ukrainian model is based on MiCA

The basis for future regulation is the EU MiCA Regulation, which establishes uniform rules for the crypto-asset market in the European Union.

At the same time, certain provisions are adapted to Ukrainian realities, in particular the conditions of martial law and current foreign currency restrictions.

This approach is intended to ensure the compatibility of Ukrainian legislation with EU law while allowing the market to operate factoring in current economic and security conditions.

In the long term, this creates the groundwork for Ukraine’s integration into the EU financial area and the mutual recognition of regulatory regimes.

The Commission is preparing for its new mandate

The interview focused in particular on the institutional capacity of the NSSMC to perform its functions as the primary regulator of the virtual asset market.

Oleksii Semeniuk noted that the Commission is streamlining its internal structure, strengthening its supervisory functions, developing international cooperation, and implementing systemic changes in the capital markets.

“I’m not asking you to take what I’m saying for granted. Capability is measured by the pace of movement — and the Commission’s pace right now is unlike anything we’ve seen before. We’re ready,” said Oleksii Semeniuk.

The Commission is also working to develop the professional expertise needed to license and supervise providers of services related to virtual assets.

Regulation should support market development

The interview also covered approaches to licensing crypto companies, taxation of transactions involving virtual assets, operations of crypto exchanges, staking, and the establishment of government standards for the safekeeping of digital assets.

According to the Chairman of the NSSMC, future regulation needs to strike a balance between protecting users, combating abuse, and fostering innovation.

The role of the state in this is not to create unnecessary obstacles for the market through excessive requirements, but to establish predictable conditions under which responsible businesses can operate legally in Ukraine, attract investment, and develop new technological products.

Read the full interview with Oleksii Semeniuk, Chairman of the NSSMC, on the Incrypted platform.