The NSSMC presented a model of distribution of roles and responsibilities for regulating the virtual assets market

A meeting of the Financial Stability Board was held, and one of the key topics was the regulation of virtual assets.

In line with the requirements of the Memorandum between Ukraine and the IMF, the NSSMC team presented to the Council a model of the division of roles and responsibilities between the NSSMC and the NBU for regulating this market. It was developed on the basis of an analysis of the EU’s experience with MICA standards and was previously presented to the IMF mission.

In particular, the following division between potential regulators is proposed:

Powers of the NSSMC:
• supervision of the issuance, public offering and admission to trading of all tokens, except EMT (electronic money tokens);
• authorisation and supervision of ART (asset-retained tokens) issuers;
• authorisation and supervision of providers of services related to the circulation of virtual assets, except for services of exchanging virtual assets for money;
• combating abuse of all tokens, except EMT.

Powers of the NBU:
• supervising the issuance, public offering, and admission to trading of EMT;
• authorisation and supervision of the activities of EMT issuers and providers of services for the exchange of virtual assets for money;
• combating abuse of EMT.

The full text is available at the link.

As a reminder, the NSSMC has recently presented a matrix for the taxation of virtual assets in Ukraine. This will help the working group of the Verkhovna Rada Committee on Finance, Taxation and Customs Policy to assess risks and decide on a national model of taxation of the virtual asset market.