“Increased attention to legal …

“Increased attention to legal …

Theories of Attention

“Increased attention to the legal regulation of cryptocurrencies is a good sign,” – OKEx top manager

  • Russia is trying to ban the circulation of cryptocurrencies

  • Ukraine legalizes cryptocurrency turnover

  • Adoption of laws in Russia and Ukraine will not solve the global problem of cryptocurrency regulation

“Increased attention to legal ...

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Almost simultaneously, bills designed to regulate the circulation of cryptocurrencies were submitted by the deputies of the State Duma and the Verkhovna Rada of Ukraine. But the content of the documents was fundamentally different. If Ukraine is following the path of legalizing cryptocurrencies and cryptocurrency business, then Russia, on the contrary, is trying to ban the circulation of digital payment assets, which include crypto coins. BeInCrypto discussed the possible implications of the adoption of the draft laws for the crypto industry with Ksenia Oshurko, Director of Business Development in Russia of the international cryptocurrency exchange OKEx.

“Increased attention to legal ...

Ksenia, the Verkhovna Rada has submitted a draft law “On virtual assets”, which gives a precise definition of what is a digital virtual asset and how the turnover of cryptocurrencies will be regulated. In fact, cryptocurrencies are getting legal status. How it will affect the crypto business in Ukraine?

K.O .: The authorities of Ukraine, like Russia, as well as many countries around the world, are now seriously thinking about the need for a legislative definition of cryptocurrencies and various legal relations between persons that may arise in the process of their acquisition or alienation. Now two approaches prevail in the regulation of this area: the first is prohibitive, which imposes restrictions on turnover and obliges intermediaries to exercise additional control over persons who enter into relations related to cryptocurrencies. The second, softer, is an attempt to give a definition, taking into account all the features, the basic concepts and types of relations in this area. I will make a reservation right away that the process of developing legislation in the field of cryptocurrencies itself is rather pleasing, since it gives the subjects of legal relations clear and understandable rules within which it is possible to work with cryptocurrencies. However, the attempt by some countries to extrapolate the norms of international monetary control to cryptocurrencies under the pretext of combating money laundering and financing of criminal activities cannot but cause concern. In this sense, based on what I have read and know about the Ukrainian bill, I am glad that there, in contrast to Russia, they followed the path of definitions, not prohibitions. This approach will contribute to the development of the cryptocurrency sphere and the growth of the well-being of the subjects of these relations, and, consequently, the growth of revenues to the budget of Ukraine. I really hope that our Russian colleagues will eventually also follow this path..

– This project will help to legitimize the provision of services in the field of cryptocurrency turnover, provided that the company is registered in Ukraine. Does this mean that Ukraine can become a “cryptoasis” for exchanges that plan to operate in Russia, CIS countries and Europe??

K.O .: The requirement to register a representative office of a company to carry out its activities in the territory of a particular country is common for any sphere of economic activity. In this sense, it was logical to include it in the draft law regulating cryptocurrencies. However, this does not give special rights to companies outside the jurisdiction of the countries where their representative offices are located, if they are not member states of the European Union, for example. So the opportunity to open a representative office will greatly facilitate the work of exchanges within the country, which is very good, but will not solve issues related to international regulation..

– The adoption of the bill will actually oblige the exchanges to disclose data about their clients at the request of the Ministry of Internal Affairs. Are the exchanges ready for this, because the meaning of cryptocurrencies is precisely that it is an anonymous payment instrument?

K.O .: It is clear that the presence of legal registration and representation in the territory of the country obliges companies to follow the rules of law adopted in this country. If these rules provide for the disclosure of their customers’ data at the request of government agencies, the company will be obliged to comply, however, this will only apply to those customers who are listed on the exchange as citizens of the country that makes such requirements. Exchanges do not disclose customer data on their own, on their own initiative.

– How will the adoption of the bill affect the banking system? After all, banks will have another function: converting fiat money into cryptocurrencies and vice versa. Can cryptocurrencies compete with existing banking products such as deposits?

K.O .: Over time, when operations with cryptocurrencies will fully come into use, the legislation in this area will become regulated, and the international approach to cryptocurrencies is quite unified, of course, banks will take on part of the functions for the circulation of these funds. Nevertheless, the general public will be suspicious of cryptocurrencies for a long time, so these products will simply exist on a par with the rest..

– Thanks for the conversation!


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