Ukraine - Calls for “Legal Bitcoin” in Ukraine, as Natsbank Mulls E-Fiat

Ukraine, now serious about crypto regulation, is setting up a special working group to oversee the completion of the necessary framework. Dedicated legislation has been making its way through parliament since October. The National Bank is considering plans to emit “e-hryvnias”, while the justice minister says bitcoin is a fact and calls for its legalization.

Cryptocurrencies have been addressed as a major topic of discussion during a meeting of the National Cybersecurity Coordination Center on Thursday. Participants took a closer look at what they referred as “uncontrolled circulation of cryptocurrencies on the territory of Ukraine”, Froklog reported. According to representatives of Ukraine’s National Bank, Security Service and National Police – the absence of control and the anonymity of transactions create conditions for laundering money acquired through criminal activities. Unsurprisingly, Ukrainian officials also noted the possible use of cryptos to purchase illicit goods, like drugs and weapons. The “black list” would’ve been incomplete if financing terrorism was not mentioned, and so it was.

This is what Oleksandr Turchynov, Secretary of the National Security Council, said during the meeting of the cybersecurity body. In his words, when the government is distancing itself from the matter, in a legal vacuum, threats arise for the economy and security of the state. He emphasized the absence of regulatory framework and subordinate statutory instruments. With the fast development of cryptocurrencies around the world, Ukraine cannot leave this question without the due attention, Turchynov stressed.

Following his comments, the NCCC decided to set up a working group and charge it with finalizing all legal preparations to adopt crypto regulation. The National Bank, the Ministry of Finance and the Security Service will be represented in the party, along with other supervisory and law enforcement institutions. They must determine how the cryptocurrency market will be functioning and how the mechanism to monitor transactions and identities will be implemented. The working group will also be dealing with crypto-taxation.

The government experts will develop a mechanism to access data collected by the cryptocurrency exchanges. They will be obliged to keep transaction records under the requirements currently applicable to other financial institutions. Crypto companies will have to reveal information about their customers when a “motivated request” is submitted by the authorities.


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