Ruslan Magomedov, the Chairman of the NSSMC: the legal market of virtual assets in Ukraine – will be. What happens after the adoption of the Law on this by the Verkhovna Rada

Of course, the adoption of the Law on Virtual Assets on Thursday was the news of the last week for me, for the NSSMC and for a large part of the market. This is our starting point and a decent launch for the legal development of this segment in Ukraine. But what is behind this, and, despite the adoption of the Law №3637, what is the market still lacking?

A little background on the subject. The Verkhovna Rada supported the revised Law of Ukraine on Virtual Assets with the proposals of the President on February 17. According to the Law, the NSSMC is vested with all the powers to regulate the virtual assets market, except virtual assets, which are secured by currency values. These will belong to the powers of the National Bank of Ukraine.

Ukraine used to be called the Mecca for those who work with virtual assets for a long time, but this market was “gray”. This issue has long been resolved often in favor of financial regulators in many countries around the world. I would like to take solace in the fact that Ukraine has finally become one of the world leaders not only in the growth rate of the segment, but also in its progressive settlement. I thank the MPs for the fact that we have settled the virtual asset market quite quickly, because all markets around the world feel its presence today, but they react and perceive it differently in their financial ecosystem.

What now? The NSSMC will determine the procedure for virtual assets trading, issue the license for market participants, protect the rights and interests of investors, as well as perform financial monitoring in this area, etc. I can assure you that the Regulator has already the necessary professional expertise for its work, plans to expand the pool of its experts and focus its efforts on creating incentive instruments for the industry, as well as protecting the interests of investors.

What’s next? It should be understood that the Law establishes only the most important rules in this market. Now our task, based on the needs of the participants, is to prepare the proper regulatory framework from scratch, to amend the Tax and Civil Codes. This is the work not only of the NSSMC, but also of other regulators and authorities. Without this regulation, it is impossible to have a well-organized and coordinated work of the virtual assets market. And we invite market participants to this work and dialogue. After all, our primary goal is to help the industry launch in a legal context. There is a huge field for work ahead. It’s very ambitious, but I’m sure we can do it.

We see further work in close cooperation with another regulator – the National Bank. And also we see further work in cooperation with the Ministry of Digital Transformation as the leader of high-tech changes in the country. I am convinced that our cooperation will be the key to the development of this innovative sector of the economy at a rate exceeding the growth of virtual asset markets in other countries of the world. We will form a regulatory model that will be simple, progressive and, most importantly, effective.

This is what I finally want to draw attention to. All regulation should not hit the market, but strengthen the potential of its legal growth, and ensure the maximum protection of the rights and interests of investors. And, I repeat, this is impossible without dialogue with market participants. Only joint efforts of all authorities and the market community will guarantee a win-win progress for everyone: both the state and the market.

Ruslan Magomedov, the Chairman of the NSSMC

The source: LB.ua