Ukrainian Central-Bank Official: “Over Regulation is Stifling Crypto Development in the Country”

According to one of the top ranking officials working for the NBU (Central Bank of Ukraine), the nation’s existing economic policies are severely preventing its cryptocurrency industry from “evolving” at an optimal rate.

In an interview with Mikhail Vidyakin, NBU’s Director of strategy and reform, he was quoted as saying that as things stood, there were too many different financial bodies that had a say in how crypto assets should be governed within the nation.

With this information in mind, it should be remembered that there currently exist around three separate government organizations in Ukraine that have some sort of authority over the nation’s crypto sector. These include:

  • The NBU
  • The Ministry of Finance
  • National Securities Commission

According to Vidyakin, in order to foster the optimal growth of Ukraine’s bitcoin industry, the number of regulators needs to be reduced ASAP.

More On The Matter

Along with reducing the number of regulatory bodies within Ukraine, Vidyakin also believes that his country needs to establish a clear regulatory framework for digital currencies (as well as provide the industry with better altcoin-related definitions so as to minimize financial conflict of interests in the future).

Not only that, but he also believes that the government should relax some of its existing limitations so that banking institutions can openly interact with the fintech sector.

Final Take

As some of our regular readers may remember, the Economic Development and Trade Ministry of Ukraine initiated a policy framework (last October) to help in the legalization of crypto-related activities within the nation. However, as things stand, the framework has not yet been introduced by the government.

Last but not least, late last year the Ukrainian parliament drafted a bill that offered to introduce a “five percent tax for individuals and legal entities conducting operations using altcoins”. Not only that, but the bill also proposed to raise the crypto-related profit tax rate to a substantial 18 percent (for private businesses) by the year 2024.

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