Aligning Ukraine’s Crypto Regulations with EU Standards: Balancing Consumer Protection, Financial Stability, and Market Growth

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The Ukrainian central bank, the National Bank of Ukraine (NBU), has set its sights on aligning the country’s crypto regulations with European standards. Working closely with the National Commission on Securities, the Stock Market, the Ministry of Digital Finance, and a group of MPs, the NBU aims to develop a regulatory plan that shares the spirit of the EU’s Markets in Crypto-Assets (MiCA) legislation.

In its latest statement, the NBU emphasized the need to strike a balance between protecting the interests of consumers and maintaining financial stability within the burgeoning crypto market. The bank added that while regulation should adhere to European norms, it must also consider the unique aspects of Ukraine’s legal and financial systems. To ensure the rights of all crypto market participants are safeguarded, the NBU underscored the importance of transparency in its regulations.

The NBU’s Director of Strategy and Development, Arsen Makarchuk, spoke on the creation of market development conditions and the vital task of constructing “transparent and clear rules” for the virtual assets market. These rules, he explained, must benefit service providers and users alike.

Makarchuk also highlighted that two entities would be responsible for crypto regulation in Ukraine, namely the NBU and the National Commission for Securities and the Stock Market. As part of their mandate, both regulators will collaborate on proposals. While adjusting to Ukraine’s particular landscape is crucial, this does not contradict the adoption of regulatory standards similar to those in the EU, he noted.

Such a regulatory shift marks a departure from Kyiv’s previous approach to crypto regulation. Ukrainian lawmakers had generally adopted a “light touch” stance towards regulations in the past. The transition towards EU-style regulatory frameworks is a significant move that aims to highlight the balance between consumer protection and financial stability on the one hand. On the other hand, it also seeks to establish transparency in the evolving crypto ecosystem, ultimately fostering a prosperous crypto market for all participants.

Source: Cryptonews

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