Most notably, the NBU has indicated that bitcoin payment systems and payment infrastructure services must register with the agency and abide by existing laws related to the management of electronic money.
The announcement positions Ukraine closer to the European Union than Russia on matters of virtual currency regulation, even as Russia has moved to solidify its influence over the former USSR member state on the national stage.
Russia abruptly banned bitcoin earlier this year, in what has been one of the more hostile reactions to the emerging technology.
Indeed, Russia’s reaction was a topic of conversation in message board posts related to the newspaper’s announcement, suggesting fears Ukraine could adopt a similar stance were prevalent prior to the news.
Existing laws
The topic of whether bitcoin businesses necessitate unique laws is being debated around the world, and as such, Ukraine’s decision to use existing laws gives it a unique position on the global stage.AIN.UA published the full comments it obtained from the NBU, which amount to a few paragraphs of direction, as well as a link to an existing payment systems and money laundering law – “On Payment Systems and Funds Transfer in Ukraine” – which lies at the center of the new guidance.
Pursuant to Article 9 of the law, the NBU stated that bitcoin businesses have the right to perform services only after registering with the government, suggesting that those that have not are in violation of current law.
Article 9 also requires payment service providers to:
- Enact a procedure for settling instances when it fails to perform services
- Establish an organizational structure and formal channels to resolve member disputes
- Provide information about the transfer of money to enhance consumer protection.
Impact
Roman Skaskiw, an American bitcoin enthusiast living in Ukraine, suggested that the new guidance may limit growth and innovation in the European nation.Said Skaskiw:
“I think it’s ridiculous. Because property rights are so weak in Ukraine, software has been one of the few opportunities Ukrainians have been able to realize.”Skaskiw described Ukraine as having “world-class programmers”, but said that there is “very little in the way of a community” around bitcoin. To further encourage this growth, Skaskiw suggests that Ukraine should strive to create a permissive environment for virtual currency.
The news also comes amid statements from bitcoin thought leaders that suggest Ukraine could be a key market for bitcoin.
