With the increasing popularity of cryptocurrency all around the world, the government of different countries are introducing regulatory frameworks for cryptocurrencies trading. Something similar has happened once again as this time it is Ukraine Government who plans to create a group that will be responsible for overseeing regulatory measures for cryptocurrencies and cryptocurrency exchanges.
Last year, the whole crypto market showed an explosive growth in the world which grabbed the attention of government and financial houses of different countries. Watching the impact of this immense growth over financial institutions, the National Bank of Ukraine requested the government to apply rules and regulations for trading of cryptocurrencies in Ukraine. Another reason which forced National Bank of Ukraine to request for certain regulation regarding cryptocurrencies is the increase of illegal activities such as weapon trafficking and drugs supply.
As per reports, the new group will include representatives of National Bank of Ukraine, Ministry of Finance and other security agencies of Ukraine to form such rules and regulations regarding trading of cryptocurrencies. After this proposal, the agencies which are involved in the framing of certain rules will be given more access to websites and platforms that deal in cryptocurrencies and other digital assets.
The ideas of creating fiat based cryptocurrencies have already been examined by many countries of the world. A few weeks back the possibility that the Eurozone would introduce its own cryptocurrency has been denied by the officials of EU. Another statement published by NSDCU claimed that The National Bank of Ukraine is planning to publish its own cryptocurrency. While Russia and Venezuela have also on the other side have already started working on their own fiat based cryptocurrencies.
If the reports of crypto analysts are to be believed then the cryptocurrency on which Ukraine Government is working on will aim to curb the popularity of Bitcoins and Altcoins in the country. It will also provide authorities and government officials more financial control. The new rules and regulations which are announced by the Ukraine government will help the authorities of Ukraine to properly tax any income which has been generated through the trading, investing and mining of cryptocurrencies.
Hence, it will also help government officials in maintaining discipline in the trading of cryptocurrencies by minimizing the illegal activities across the country and also by collecting proper tax from the people who are earning through cryptocurrencies.