Vidyakin, the Director of the Department of Strategy and reforms at the National bank of Ukraine (NBU) has reportedly opined that too many regulators are being given the authority to regulate cryptos and fintech; he believes the situation is adversely affecting the industry, as per local news source LetKnow on January 8, 2018.
Crypto Development Hampered by Too Many Regulators
At a time when various jurisdictions across the globe are now getting set to regulate their domestic crypto-ecosystems in the best way they can, whilst curbing unlawful practices, a high ranking official in the Ukrainian government has reportedly made it clear that the state needs to trim down the number of agencies regulating fintech and distributed ledger technology (DLT) based cryptoassets in the nation.
Per sources close to the matter, the Director of Strategy at Ukraine’s apex bank, the National Bank of Ukraine (NBU) has reportedly hinted that the growth of the Ukrainian digital assets ecosystem is being hampered by the presence of a considerable number of regulatory bodies, all of which are scampering to formulate rules for the nascent technology.
Specifically, Mikhail Vidyakin also noted that these so-called regulators have failed to establish proper definitions for innovations and as such, the number of agencies overseeing the fintech and crypto markets should be pruned down significantly.
“I am in favor of regulation that will allow the market to develop. The Fintech is an innovative channel for the provision of financial services, and banks must be open to this,” he declared.
An Unsolved Puzzle
Despite Ukraine’s push to join the little league of nations like Malta, Gibraltar, and others that have amenably regulated their domestic blockchain and cryptoassets industry, the country is yet to achieve the feat successfully.
According to LetKnow, Ukrainian authorities are still trying to find out the exact agency that would be given the responsibility of regulating the industry, even though they have since agreed to categorize bitcoin and other cryptocurrencies as financial assets.
The government is yet to decide whether digital assets and all things financial technology should come under the oversight of the Ministry of Finance, the National Bank or even the National Commission for Securities, as is obtainable in the United States where the Securities and Exchange Commission (SEC) oversees initial coin offering (ICOs) and other bitcoin-related businesses.