Ukraine cyberpolice suggest cryptocurrencies be banned unless regulated

If the government fails to regulate cryptocurrencies in the near future, their turnover should be banned, chief of Ukraine’s cyberpolice, Serhiy Demediuk, said.

"In case of its inability to regulate cryptocurrencies in Ukraine in the near future, the state should officially prohibit its turnover so that everyone who is buying or selling cryptocurrency in the territory of Ukraine knows they risk losing their financial investments irrevocably, without the right to protection and compensation for damage," the press service of Ukraine’s Cyberpolice reported citing Demediuk as saying.

At the same time he added that the cyberpolice are ready for cooperation toward further legalization and regulation of cryptocurrency technology in Ukraine.

The statement also reads that cyberpolice support the idea of legalizing cryptocurrencies in Ukraine, as well as the process of their mining and the idea of using Blockchain technology in both public and private sectors.

Read also57 Ukrainian officials declare over 21,000 bitcoins – media"Today the need emerged to resolve on the legislative level as soon as possible issues related to the use of cryptocurrencies, as well as the introduction of the necessary taxation of operations for the purchase and sale of cryptocurrencies. In addition, it is necessary to determine the appropriate rules for the functioning of Ukrainian cryptoexchanges and crypto exchange booths," Demediuk said.

It is reported that because of the non-regulated status of cryptocurrencies in Ukraine, perpetrators actively employ them to anonymize their criminal activities, while citizens become victims of fraudsters during cryptocurrency transactions without having full protection from law enforcement agencies.

Read alsoFT: Ukraine to create group to regulate cryptocurrency marketSerhiy Demediuk added that all crypto transactions should involve mandatory identification of owners of cryptocurrency wallets, since the law enforcers’ major challenge around the world is precisely the confirmation of the owner's right to the wallet, and, consequently, their recognition as victims of fraud.