Cryptocurrency Legalization In Ukraine Supported By Cyber Police

News, Regulation | February 1, 2018 By:

Sergey Demediuk, head of the Cyber Police Department of Ukraine, said that it is necessary to regulate, at a legislative level, all matters pertaining to the use of cryptocurrencies.

In a Facebook post, Demediuk stated that the current law needs to be amended in order to tax crypto- related transactions, and the rules of operating crypto exchanges have to be determined.

“De facto, by all signs, the cryptocurrency can belong to electronic money – a unit of value stored on an electronic device and accepted as a means of payment,” said Demediuk. “At the same time, control over its transactions is ensured by its cryptographic protection. Thus, despite the fact that the existence and circulation of the cryptocurrency is based on the foundations of a financial pyramid, the cyber police support the idea of the legalization of the cryptocurrency in Ukraine, as well as the process of its mining.”

Demediuk also believes that all crypto transactions in Ukraine should be backed up by mandatory identification of the involved cryptocurrency wallet owners. He noted that if the status of cryptocurrency is not settled shortly, the government will have to prohibit its circulation in the country.

“If it is impossible soon to regulate the status of the cryptocurrency in Ukraine, the state should officially prohibit its turnover, so that everyone knows that by buying or selling cryptocurrency in Ukraine, they risk losing their financial investments irrevocably, without the right to protection and recovery of losses,” he said.

Earlier this month, the National Cyber Security Coordinating Center instructed relevant authorities to set up a working group in order to develop legal proposals for regulating cryptocurrencies.

In Octeber, 2017, Konstantin Yarmolenko, advisor to the head of Ukraine’s State Agency for E-Governance, submitted a proposal for legislation containing regulatory guidelines for cryptocurrencies to the Ukrainian Parliament. The legislation calls for cryptocurrencies to be taxed as a kind of property. It also calls for the central bank to develop an operating procedure for cryptocurrency exchanges. The legislation has not yet been passed into law.