Head of Ukraines SEC Hints at Upcoming Crypto Asset Legislation

The National Commission on Securities and Stock Market of Ukraine (NSSMC) is currently developing legislation concerning virtual assets. This was announced by the head of the regulator, Ruslan Magomedov, in an interview with Interfax-Ukraine.

According to him, «the likelihood of Ukrainian virtual assets emerging is very high with proper regulation.»

Magomedov emphasized that the draft law has been sitting on the desks of parliament members for more than 1.5 years. However, he believes that the document could be passed in its first reading soon, though the timeline for final approval remains uncertain.

He pointed out that the NSSMC is advocating for the regulation of tokens linked to physical assets (ART), while the National Bank of Ukraine (NBU) will oversee fiat-backed cryptocurrencies.

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

«We are suggesting a regulatory framework based on MiCA because we are on our way to joining the European Union and are candidates for membership. This isn’t about imposing strict regulations; our goal is to protect honest businesses from fraudsters,» Magomedov emphasized.

The Commission has also proposed a taxation model for crypto assets, but the ultimate decision rests with the parliament and the Ministry of Finance.

The head of the NSSMC believes that virtual assets represent the next phase in the evolution of the capital market. Companies will be able to raise funds through ICOs instead of traditional IPOs.

«I want to leverage the best aspects of the crypto market, but within a regulated jurisdiction,» Magomedov concluded.

It is worth noting that on March 14, the NSSMC proposed a taxation matrix model for cryptocurrencies.