Regulatory Framework for Ukraines Crypto Market Unveiled by Financial Stability Council

The Financial Stability Council (FSC) held a meeting where one of the primary discussions focused on the regulation of the digital asset market in Ukraine.

At the meeting, a framework for distributing responsibilities between the key regulators—the National Securities and Stock Market Commission (NSSMC) and the National Bank of Ukraine (NBU)—was presented.

This initiative stems from the obligation to fulfill the requirements set out in the Memorandum between Ukraine and the IMF.

The proposed framework is based on European standards outlined in the MiCA regulation and has previously been presented to the International Monetary Fund.

According to the suggested model, the NSSMC will oversee the issuance and circulation of tokens, excluding electronic money.

The commission will regulate the activities of issuers of assets tied to real value and service providers related to virtual assets (with the exception of fiat exchange operations). The regulator will also focus on monitoring and preventing market abuse.

The NBU has been tasked with regulating the issuance and circulation of electronic money, overseeing their issuers, and monitoring exchange operations. It will also be responsible for combating violations within this sector.

As a reminder, on March 14, the NSSMC proposed a model for the taxation matrix of cryptocurrencies.