Will Cryptocurrency Regulation Be Inevitable?
The National Bank of Ukraine, the country’s central bank, has signaled it may seek look to regulate the use of cryptocurrencies. While there is a clear path for the initiative is still non existent, in its most recent announcement, the central bank said the legal implications of cyrptos will be in discussion at the next Financial Stability Board of Ukraine meeting at the end of this month.
This decision is coming at the time when Ukraine is experiencing increased bitcoin activity, from payments to mining to blockchain development, but also when regulatory doubt has led its law enforcement to take action to discipline bitcoin users.
Only just a few days ago, the Ukrainian police arrested multiple suspects who supposedly set up 200 computers to mine bitcoin at an abandoned swimming pool within a state institute of Kiev.
The local media Kyiv Post reported the court document accused the suspects of illegally taking advangage of state property, and creating a currenty, which is currently a function only the Ukraine National Bank is legally permitted to do. Also the law states that no other currency aside from the Ukrainian Hryvnia can be used as a legal payment in the Ukraine.
Announcing the different stances taken by other countries in defining cryptocurrencies, the banking authority will not start its discussion with the Ministry of Finance, State Fiscal Service, the State Financial Monitoring Service, Securities and Stock Market State Commission and the National Commission for the State Regulation of Financial Services Markets.