Ukraine as President Volodymyr Zelensky has returned a cryptocurrency bill to Parliament for revision, according to reports on Wednesday (Oct. 6) from The Block and CoinDesk.
Under the bill approved by the Ukraine Parliament in September, a new regulatory body would be established to oversee cryptocurrency. Citing the expense of establishing such a regulatory body, Zelensky has instead recommended that the National Securities and Stock Market Commission — Ukraine’s version of the U.S. Securities and Exchange Commission — handle the oversight.
Parliament will now need to schedule a new hearing for the revised bill.
The legal standing of cryptocurrencies in Ukraine was previously not clearly defined, as locals were allowed to transact using it, but companies dealing in crypto were closely watched by regulatory authorities.
In July, Parliament passed legislation that determined central bank digital currency (CBDC) was functionally equal to cash or other payment tools.
Ukraine’s governing body passed a law concerning payment services that mentions the future CBDC as the “yet-to-be-launched electronic hryvnia,” which is the country’s national currency. The National Bank of Ukraine (NBU) has been exploring its own CBDC on the Stellar blockchain since 2018, and though it has not yet launched, it is still a consideration. The NBU published a 2019 report on the e-hryvnia that analyzed the advantages and disadvantages of using decentralized tech for a CBDC.
Ukraine is looking to digitize the economy and the country is among the few countries that have aggressively sought to pass legislation that views CBDC as currency.