Bitcoins cannot be Considered as Money, Legal Tender, Currency: Ukrainian Regulators

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Crypto Legal Status as Difficulty

Ukraine is constantly working on the regulatory framework for the cryptocurrencies.The nation’s top financial regulators, the National Bank of Ukraine (NBU), the National Securities and the Stock Market Commission (NCSSM), and the National Commission for the Regulation of Financial Services Markets, together claimed a statement about the cryptocurrencies on Thursday.

They noticed the lack of one single approach to conclude the legal status of the cryptocurrencies or their regulations among the regulators of the world’s top countries. As for Ukraine, cryptocurrency does not fall below any existing prescription so it can not be recognized as money or as a currency or as a legal tender of a foreign state and has no monetary value. Adding to it, cryptocurrency cannot be recognized as electronic money, valuable paper, or money substitute.

According to the financial authorities:

“We believe that changes in legislation should be consistent with international trends. This, of course, should not be ‘legislation on bitcoin.’ Such in the world does not exist. Legislation should be neutral to technology. These are the issues of using tools in a certain activity (for example, investment activity). Legislation should deal with functional issues.”

 

The three financial regulators describe, they will constantly work  on the legal status and regulatory framework of the cryptocurrency, taking into account “the position of regulators in other countries and the latest trends in the development of such technologies.”

At the same time, they warned that any activity that is related to buying and selling and exchanging and converting the cryptocurrencies will involve a large number of risks, adding that “anyone who is planning to invest in the cryptocurrency should realize that they are investing their money on their own risk”. Stated by few lawmakers who have invested in the bitcoin. In August, these three financial regulators declared that the bitcoin holdings are worth $47 million.

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