Securities

So far, in Ukranian legislation there are two major active laws related to securities:

• The Law of Ukraine No. 3480-IV “About securities and the stock market” of February 23, 2006 (The last edition from 23-03-2017) and
• The Law of Ukraine No. 448/96-BP of October 30, 1996 “About state regulation of the security market in Ukraine” (The last edition from 16-11-2017)

This Laws determine the legal basis of implementation of state regulation of the security market and the state control of release and security circulation and their derivatives in Ukraine.

Blockchain and Tokens

However, as mentioned in previous section, “Laws related to token sales, blockchain, and digital proof ” (on github ) , the Verkhovna Rada of Ukraine is drafting Law No. 7183-1 “On cryptocurrency turnover in Ukraine”.

The analyzed version of the bill does not contain any mention of tokens at all. There are definitions of derivatives for cryptocurrency, but this bill does not give anything specific and clear about the status of tokens.

The bill prohibits any exchange operations with cryptocurrency (“financial asset”) outside licensed exchanges. An eExchange is a legal entity that has the status of a financial institution and provides all types of financial services in the cryptocurrency market. The minimum amount of authorized capital should be not less than five million hryvnias on the day of the license to operate. The authorized capital must be formed exclusively in cash. At least 51% of the authorized capital belongs to the citizens of Ukraine.

Crypto exchange operations for the purchase of cryptocurrency for the national currency can be carried out exclusively by certified investors in the cryptocurrency market.

For natural and legal persons, residents, and non-residents it is forbidden to open anonymous accounts. The terms of opening an account are contained in the contract with crypto-exchanges.

Sources:

• Verkhhovna Rada, Bill 7183-1, from 10.10.2017

• [The Law of Ukraine No. 3480-IV “About securities and the stock market” of February 23, 2006, the last edition from 23-03-2017] (http://cis-legislation.com/document.fwx?rgn=11328)

• The Law of Ukraine No. 448/96-BP of October 30, 1996 “About state regulation of the security market in Ukraine”, the last edition from 16-11-2017)