Ukraine's National Bank has warned against the associated risks that come with digital currencies such as bitcoin.
Instead, it urged banks, consumers and payment organisations to use approved payment systems that guarantee consumer protection.
Touching on the lack of an international virtual currency regulatory framework, a loosely translated version of the statement reads:
The statement also said that the bank was closely monitoring the development and use of new payments services. Although it believes that new participants should have an equal opportunity to enter the market, the bank noted that ensuring the security of payments was a priority.
A 'considered view'
Alexander Shelkovnikov, a founding member of Ukraine's Bitcoin Foundation, told CoinDesk that the central bank's recent recommendation was a more considered view than what it offered last year.
The news comes after reports in March this year that the Ukranian government was planning to block bitcoin accounts belonging to separatists operating in the East of the country.
CoinDesk contacted Ukraine's National Bank but no reply had been received at press time.
Ukraine National Bank image via Shutterstock.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.