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Pawn Shops in Ukraine Set to Start Accepting Cryptocurrencies as Loan Security

Ukrainian Authorities Agree to Regulate Bitcoin and Other Cryptocurrencies as Financial Instruments

Reading Time: 2 minutes by on July 22, 2018 Finance, News, Regulation
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In spite of the vibrant nature of the Ukrainian cryptosphere, digital currencies remain unregulated in the region. However, the situation is finally about to change for the better. The head of the National Securities and Stock Market Commission (NSSMC), Timur Khromaev, announced on Facebook on July 20, 2018, that the country’s Financial Stability Council has thrown its weight behind the concept of regulating blockchain-based virtual currencies as financial instruments.

Amenable Crypto Regulation

Slowly but steadily, the dark clouds of global regulatory uncertainties are clearing as many governments have started formulating regulations for the digital currency space.

In a major breakthrough for Ukrainian hodlers, the Financial Stability Council – a body made up of officials from regulatory watchdogs including the National Bank of Ukraine, the Ministry of Finance, the National Financial Services Market Commission, the National Securities Commission, and the Deposit Guarantee Fund – has agreed to amenably regulate the local cryptocurrency industry.

According to Khromaev, specific categories of cryptocurrencies and tokens will be recognized as financial instruments, and the roles of various regulators in the digital currency space will now be clearly defined.

The official further noted that this latest development lays a solid foundation for greater things to come, saying, “[it] confirms its readiness to work with the Verkhovna Rada of Ukraine and the Kryptonian to form a legislative and regulatory framework,” fostering transparency and cordial relations between stakehodlers in the Ukrainian cryptoverse.

A Long Time Coming

On May 14, 2018, reports emerged that the head of the NSSMC had made his stance concerning the creation of a regulatory framework for the industry. At the time, he stated that the crypto industry is fast becoming a formidable force to reckon with in global “economic and financial relations,” concluding that it only makes sense to regulate bitcoin and other cryptocurrencies as financial instruments.

Even though bitcoin and altcoins have not been officially categorized as legal tender, a vast majority of Ukrainians remain quite enthusiastic about the burgeoning virtual currency ecosystem.

Back in February, BTCManager reported that the Cyberpolice Department of the Ukrainian police had declared support for the full legalization of digital assets in the country. At that time, the head of the Ukrainian Cyberpolice Department, Serhiy Demediuk, stated,”…the cyber police support the idea of the legalization of the cryptocurrency in Ukraine as well as the process of its mining.”

At a time when Ukrainian hodlers are making plans to erect a statue of Satoshi Nakamoto in Kiev, non-draconian regulation of the nation’s cryptosphere may be another positive event that could send the price of bitcoin to the moon.

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