The Financial Stability Council of Ukraine has supported a concept for crypto regulations, Timur Khromaev, head of the National Securities and Stock Market Commission (SSMCS) reported in a Facebook post July 20.

According to Khromaev, the concept involves recognizing cryptocurrencies and tokens as financial instruments, establishes the roles and functions of governmental bodies in regulating those instruments, in addition to licensing transaction participants, defining information disclosure conditions, and other factors.

The Financial Stability Council comprises of the Governor the National Bank of Ukraine, the Minister of Finance, heads of the National Securities and Stock Market Commission and the National Commission for State Regulation of Financial Services Markets, and Managing Director of the Deposit Guarantee Fund. They are tasked with detecting and minimizing risks to the stability of the national financial and banking systems. Decisions made by the council are recommendatory.

Khromaev commented that the move is “an important first step in building a consensus among government agencies and financial regulators,” which confirms the commitment to cooperate with the Verkhovna Rada of Ukraine on the development of legislation and a regulatory framework for cryptocurrencies. The NSSMC head added that the framework aims to ensure transparency and a high level of interaction between “investors and crypto market participants.”

The concept of recognizing cryptocurrencies as a financial instrument was suggested by the NSSMC in May, 2018, with Khromaev emphasizing the necessity of legal recognition of cryptocurrencies and adapting the position of financial regulators. According to Khromaev, the developing crypto industry has caused the crypto market to become an “integral part of economic and financial relations.”

Last month, the State Special Communications Service of Ukraine, revealed that it is not planning to regulate cryptocurrency mining. In response to a request for information by the Better Regulation Delivery Office’s (BRDO), the agency said that they have no intention to introduce licences for crypto mining, which would classify it as a special kind of activity.