Publication date: 08.06.2024
New trends in the regulation of financial markets in Ukraine
Introduction
Financial markets play a key role in the development of Ukraine's economy, ensuring the mobilization and efficient allocation of financial resources. Recent years have been characterized by significant changes in the legal regulation of financial markets aimed at increasing their transparency, stability and integration with international markets. In this article, we will analyze the main new trends in the regulation of financial markets in Ukraine.
Legislative changes
The Law on Capital Markets and Organized Commodity Markets:
- This law came into force in 2020 and became the main regulatory act governing the capital markets in Ukraine. It harmonizes Ukrainian legislation with European standards, including EU directives and regulations.
- It sets new requirements for public companies, expands investor rights and increases market transparency.
Implementation of MiFID II regulations:
- The Law on Capital Markets and Organized Commodity Markets integrates the provisions of MiFID II, which regulates the activities of investment firms, trading platforms and investor protection.
- Establishes requirements for licensing, information disclosure and conflict of interest management.
The Law on Prevention and Counteraction to Legalization (Laundering) of Proceeds of Crime:
- The law, adopted in 2019, introduces new anti-money laundering and anti-terrorist financing standards, harmonizing them with the requirements of the FATF and the EU.
- Requires financial institutions to implement a risk-based approach, conduct customer due diligence and monitor transactions.
Institutional changes
Reform of the National Securities and Stock Market Commission (NSSMC):
- The NSSMC received new powers and tools to supervise capital markets, including the right to impose administrative sanctions and license.
- New technologies are being introduced to automate market monitoring and detect violations.
Development of capital markets infrastructure:
- Establishment of the Central Depository of Ukraine and introduction of new technological solutions for settlement and clearing operations.
- Expanding the functionality of trading platforms and implementing electronic document management.
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Innovation and digitalization
Implementation of blockchain technologies:
- Use of blockchain technologies to register ownership of securities, which increases transparency and security of transactions.
- Development of digital assets and tokenization of traditional financial instruments.
Fintech startups and regulation:
- Introduce special regulatory sandboxes for fintech startups that allow them to test innovative products and services in a real-world environment with minimal regulatory burden.
- Establishing requirements for licensing and supervision of fintech companies.
