Ukraine has taken a positive step toward legalizing cryptocurrencies as a new regulatory concept, one that recognizes coins and tokens as financial instruments, has won support from the members of the country’s Financial Stability Council, composed of representatives from the National Bank of Ukraine, the Ministry of Finance, the Deposit Guarantee Fund, the National Securities and Stock Market Commission, and the National Financial Services Market Commission.

The newly approved concept recognizes certain categories of cryptocurrencies and tokens as financial instruments. It also determines the roles and functions of government agencies, such as the National Bank, the Finance Ministry, the State Fiscal Service, the State Financial Monitoring Service, and the NSSMC, in regards to regulating the circulation of cryptos, licensing of participants in crypto transactions, and disclosure of information, according to BitcoinNews.

The status of cryptocurrencies in Ukraine is still undetermined. Three bills designed to legalize and regulate them and the related economic activities have been filed in the Rada since October but no significant progress has been made toward their adoption.

Read alsoNo license required in Ukraine for cryptocurrency mining

The recently voted Currency Law did not mention cryptocurrencies at all.

Cryptocurrencies have been steadily gaining popularity in Ukraine, especially in the last couple of years. Local media claim that the country is among the top 10 by number of crypto users. According to some recent reports, the estimated daily crypto-hryvnia turnover on the three major Ukrainian exchanges reaches $1.9 – $2 million. The actual volume may be much higher, given the large number of small trading platforms and individuals offering exchange services.