Ukrainian Cyberpolice Backs Legalization of Bitcoin and other Cryptocurrencies

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Ukrainian Cyberpolice Backs Legalization of Bitcoin and other Cryptocurrencies

The Cyberpolice department of the Ukrainian police has declared its support for the legalization of cryptocurrencies in Ukraine.

Defining Legal Status of Cryptocurrencies

A cyber unit of the Ukrainian national police has said it’s in favor of the full legalization of the cryptocurrency market. The digital crime busters have said that cryptocurrency can act as electronic money; therefore it should be regulated and legalized.

According to Interfax Ukraine, the head of the Ukrainian Cyberpolice Department, Serhiy Demediuk has said:

“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. At the same time, control over its transaction 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 (at least equating it to electronic means).”

The cyber police chief also hinted at a plan to deploy blockchain technology in the public and private sectors of the Ukrainian economy in a relatively welcome development. In Demediuk’s words:

“Today there is a need to resolve at the legislative level the issues related to the use of the cryptocurrency as soon as possible, as well as the introduction of the necessary taxation of transactions on the purchase and sale of the cryptocurrency. In addition, it’s necessary to determine the respective rules for the functioning of Ukrainian cryptocurrency exchanges and cryptocurrency exchanges points.”

Demediuk reiterated that all cryptocurrency exchanges in the country must conduct proper KYC/AML operations and ensure that all virtual currency transactions are above board. Ultimately, the task force looks to track every single crypto transaction, and it’s owner.

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

The official concluded by saying that the Cyberpolice are ready to cooperate with agencies and fintech companies in Ukraine, towards the legalization of bitcoin and other cryptocurrencies.

With this latest development, if the virtual currencies legalization process goes according to plan, many see Ukraine joining countries like Japan and others who have already legalized the use of cryptocurrencies.

Ogwu Osaemezu Emmanuel

Ogwu Osaemezu Emmanuel is a graduate of Mass Communication and Media Studies. He joined the blockchain movement in 2016 when a friend of his introduced him to an investment platform accepting bitcoin. He has never looked back since then. Emmanuel believes the world needs real change and freedom from poverty. He sees crypto and the underlying distributed ledger technology as the catalyst to a better future for all.