The National Securities and Stock Market Commission (NCSMC) has presented a new model for distributing regulatory functions in the supervision of the crypto market in Ukraine. According to this model, the NCSMC will take control over most counterparties and tokens that do not fall under the category of electronic money (EMT).
This is reported by Business • Media
The National Bank of Ukraine (NBU) will be responsible for licensing and supervising crypto asset issuers. During a meeting of the Financial Stability Council, Ukrainian legislators detailed the functions of both regulators, including:
Main Functions of the NCSMC and NBU
- licensing and oversight of service providers (CASP);
- regulating the issuance and circulation of stablecoins;
- establishing disclosure and transparency requirements to protect consumers;
- risk management in the sector;
- preventing market manipulation and abuse;
- combating money laundering and terrorist financing (AML/CFT), in compliance with the international Travel Rule standard.
The proposed model aims for sectoral supervision of the crypto market, with the NCSMC responsible for consumer rights protection and the NBU for the stability of the financial system. The document also outlines the main groups of crypto assets according to the MiCAR regulation, which includes asset-referenced tokens (ART), electronic money tokens (EMT), and others.
Cooperation Between Regulators
According to the new model, the NCSMC will supervise the issuance of all tokens except EMT, and will oversee the activities of ART issuers and service providers, except those involved in converting crypto assets to fiat. The NBU, in turn, will be responsible for supervising the issuance and trading of EMT, and will monitor the activities of their issuers and service providers that conduct crypto asset exchanges.
Both regulators are expected to cooperate closely, including sharing information. It should be noted that the industry bill (No. 10225), aimed at amending legislation and the Tax Code of Ukraine, is still in the development stage. It is anticipated that the legalization of crypto assets in Ukraine will occur in the first or second quarter of 2025, with taxation following a model similar to that of securities.
“Crypto assets will be legalized in Ukraine in the first or second quarter of 2025,” said MP Danilo Hetmantsev.