As the country moves toward establishing a regulatory framework for digital assets and digital currencies, Ukraine’s President, Volodymyr Zelensky, has returned the fledgling digital currency bill to parliament for further revisions.
Among other things, the president’s office expressed concerns about creating a new agency to oversee digital currency regulation, which it suggested could be costly compared to the policy gains from instituting the framework.
“The creation of a new body, as provided by this law, will require significant expenditures from the state budget. Therefore, Volodymyr Zelensky proposes to include the regulation of the circulation of virtual assets in the competence of the National Securities and Stock Market Commission.”
The National Securities and Stock Market Commission, Ukraine’s equivalent to the Securities and Exchange Commission (SEC), is underfunded. As a result, some have questioned whether the agency has the resources or competence to oversee any new regulatory regime.
The bill will now be reconsidered by the Verkhovna Rada, Ukraine’s national parliament, for further revision, although it has been in the legislative process for several years. Nonetheless, commentators believe the bill is getting closer to being added to the country’s statute books, where it would become law.
While the country’s legislative position remains uncertain soon, Ukraine has been pushing to become a regional center for digital currency and digital assets. In part, the drive has been viewed as a means of overcoming stagnant investment in the country from both domestic and foreign investors.
Legislators will now reconsider the bill to weigh the alternatives.