Ukraine presents a model for regulating the virtual asset market
28 March 2025 14:07
The regulation of virtual assets was one of the key issues discussed at the meeting of the Financial Stability Board. This was reported by the National Securities and Stock Market Commission of Ukraine (NSSMC), "Komersant Ukrainian" reports.
It is reported that the Commission’s team presented a model for the distribution of roles and responsibilities between the NSSMC and the NBU to regulate this market in accordance with the requirements of the Memorandum between Ukraine and the IMF. The model was developed based on the analysis of EU experience and in accordance with the standards of European legislation on the regulation of cryptocurrencies. It has also been previously presented to the IMF mission.
What is the proposed division of powers between potential regulators?
The NSSMC will supervise the issuance and circulation of tokens (except for e-money), control the activities of ART issuers and service providers with virtual assets (except for exchange for money), and counteract abuse.
The NBU will regulate the issuance and trading of EMT, control their issuers and exchange operations, and prevent abuse in this sector.
How regulators will cooperate
The regulators will notify each other of observations and findings in a timely manner, and exchange information on state regulation and supervision necessary to fulfill their responsibilities.
Regulators will have the right to obtain information necessary for the exercise of their statutory powers from each other’s databases maintained for the purpose of state regulation and supervision of the virtual asset market.
The regulators will cooperate in ensuring the protection of the rights of clients and owners of virtual assets, including the exchange of information on client complaints and violations in the virtual asset market.
Organizational and procedural issues of interaction between the regulators are determined by the procedure for information interaction between the NSSMC and the NBU.
As a reminder, in September 2024, the NSSMC and the NBU established a standing committee to develop legislation to regulate virtual assets in Ukraine
According to RBK-Ukraine, according to the Law of Ukraine “On Virtual Assets”, adopted in February 2022, the NSSMC was authorized to control and regulate the virtual assets market.
The publication also draws attention to the fact that the December 2024 Memorandum with the IMF contained a clause requiring Ukraine to update its cryptocurrency regulation legislation. The National Bank of Ukraine and the National Securities and Stock Market Commission were to prepare the relevant changes with IMF technical assistance not by the end of December 2024, but by the end of February 2025. The updated document was supposed to establish which of these bodies would become the main regulator of the cryptocurrency market in Ukraine. The process of determining the regulator was to take place in consultation between the Financial Stability Board and the IMF.
The Financial Stability Board, the results of which were discussed, is an interagency body, a platform for professional discussions on financial stability. The Council’s decisions are advisory. It collectively develops proposals for state policy measures to achieve financial stability. The National Bank of Ukraine provides information, analytical and organizational support for the Council’s activities.
