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Dilemma for Ukrainian Regulators: Bitcoins Cannot Be Recognized as Money, Legal Tender, Currency or Securities

A joint statement between the Ukrainian central bank and the country’s top financial regulators shows that existing legal concepts do not apply to cryptocurrencies. For example, they cannot be recognized as money, legal tender, currency or securities.

Crypto Legal Status Dilemma

Ukraine is actively working on the regulatory framework for cryptocurrencies. The country’s top financial regulators, the National Bank of Ukraine (NBU), the National Securities and Stock Market Commission (NCSSM), and the National Commission for the Regulation of Financial Services Markets, jointly issued a statement regarding cryptocurrencies on Thursday.

They noted the lack of one single approach to determine the legal status of cryptocurrencies or their regulations among the regulators of the world’s leading countries. As for Ukraine, cryptocurrency does not fall under any existing legislation so it “cannot be recognized as money” or “as a currency or legal tender of a foreign state and has no monetary value,” the three financial authorities explained. In addition, cryptocurrency cannot be recognized as electronic money, valuable paper, or money surrogate. According to their statement:

"Despite the existence of numerous uses of cryptocurrency in the world including as a measure of value, a means of exchange and accumulation, its complex legal nature does not allow it to be identified with any of the related concepts (money, currency, currency value, legal tender, electronic money, securities, money surrogate, etc.)."

Full article >>> https://news.bitcoin.com/cryptocurrencies-ukrainian-regulators/

It's not difficult to push through a regulation made especially for Bitcoin. All those financial terms they've quoted as unfitting were coined at some point, many of them in the 20th century. Maybe it's time to create a new one?
Another interesting thing is that they were in armed conflict with Russia and are now trying to regulate Bitcoin at the same time when Russian government decided not to do it.

I doubt any country can fully regulate the cryptocurrency space at the moment. The cryptocurrency market is right now in free market stage, meaning its is purely based on supply and demand. A government not recognizing cryptocurrency means jack if even a small group of people or merchants are willing to accept cryptocurrency as a medium of payment.