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Ukraine’s Cyberpolice Supports Legalization of Cryptocurrencies

Ukraine’s Cyberpolice Supports Legalization of Cryptocurrencies

The cybercrime combating department of Ukrainian Police has voiced support for the legalization of cryptocurrencies despite sharing some concerns about them. The Cyberpolice unit also noted the need to regulate cryptos “as soon as possible”. Ukrainian parliament is yet to adopt new legislation amid mounting calls from other institutions to regulate cryptocurrencies.  

Also read: Russia’s Longest-Serving Finance Minister Backs Crypto “Self-Regulation”

Legalize it or Ban it

Ukraine’s Cyberpolice Supports Legalization of CryptocurrenciesIt is necessary to regulate at legislative level all matters pertaining to the use of cryptocurrencies, Sergei Demedyuk, head of the Cyberpolice department, said in a statement quoted by local media. In his opinion, regulations should be adopted as soon as possible. He also pointed to the need to amend the law in order to tax crypto related transactions. The rules of operating cryptocurrency exchanges have to be determined, too, he insisted.

If authorities are unable to regulate the status of cryptos in the near future the state should officially ban their circulation, the National Police representative said. Then “everyone will know that by buying and selling cryptocurrency in Ukraine they risk losing their financial investments irrevocably, in the absence of any protection or compensation”, Demedyuk warned.

The high-ranking police official noted, however, that Ukraine’s Cyberpolice force was supportive of efforts to legalize cryptocurrencies and crypto mining in the country, despite concerns that their circulation might be “based on the same foundations as financial pyramids”.

Mounting Calls to Regulate

Demedyuk’s remarks are part of a long list of calls to legalize cryptocurrencies in Ukraine. His comments came after a study revealed that dozens of Ukrainian officials possess a total of more than 21,000 bitcoins, as news.Bitcoin.com reported.

Earlier this month the status of cryptocurrencies was discussed during a meeting of the National Cybersecurity Coordination Center in Kiev. Representatives of the security services took a closer look at the “uncontrolled circulation” of cryptos in Ukraine. The cybersecurity body decided to set up a special working group to complete the legal framework. It should assist other authorities in building foundations for the crypto market, establishing procedures to monitor transactions and clarifying aspects of taxation.

The Secretary of the National Security Council of Ukraine Oleksandr Turchynov said that the development of the cryptocurrency market could not be left unattended. The Minister of Justice of Ukraine Pavel Petrenko stated that Bitcoin must be brought into the legal field adding that government institutions should respond to the phenomenon. A petition to the president to legalize cryptocurrencies was filed on January 12.

Ukraine’s Cyberpolice Supports Legalization of Cryptocurrencies

While The National Bank of Ukraine remains opposed to cryptocurrencies, legislators have introduced two bills to regulate their status. The drafts have been advancing through commissions in the Rada since October. One of them aims to regulate the circulation of cryptos, and the other is designed to stimulate the cryptocurrency market and the trade of crypto derivatives. Proposed amendments to the tax code cover taxation aspects, with possible incentives for mining companies. The legalization of bitcoin, however, can take many more months, as the government must prepare subordinate statutory instruments to implement the law.

Do you think Ukrainian deputies will speed up the process of adopting cryptocurrency regulations after multiple calls by other Ukrainian institutions? Tell us in the comments section below.


Images courtesy of Cyberpolice Ukraine, Verkhovna Rada. 


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The post Ukraine’s Cyberpolice Supports Legalization of Cryptocurrencies appeared first on Bitcoin News.



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