Ukraine to regulate bitcoin, other cryptocurrencies

Bitcoin will be regulated in the Ukraine and the country is planning to launched a cryptocurrency of its own, if local media reports are to be believed.

According to local media reports, Ukrainian authorities have released a statement wherein they have revealed the formation of a working group comprised of major government watchdogs, authorities and the central bank to introduce ‘comprehensive regulation’ of the cryptocurrency sector.

A statement released by Ukraine’s security council, per the media reports, reveal details of prolonged discussion on the advent of cryptocurrencies in the country during a meeting centered on matters related to the security and defense of the state.

One of the participants of the meeting was National Security and Defense Council Secretary Oleksandr Turchynov, who said that lack of oversight into the use of cryptocurrencies “poses a threat to the economy and security of the state.”

He said that the issue can’t be left out of state’s attention and to ensure that cryptocurrencies are not allowed a free reign, a working group of market regulators, financial authorities and watchdogs will be put into place. This working group will develop legally compatible proposals to regulate cryptocurrencies, have broader oversight into the cryptocurrency market, monitor transactions ‘with the use of “cryptography’ and identify participants in cryptocurrency transactions. In addition, the working group will also work taxing adopters gaining income in cryptocurrency payments.

The working group will specifically comprise of representatives from National Bank of Ukraine, the Ministry of Finance of Ukraine, the National Securities and Stock Market Commission of Ukraine, the SSU, the National Police of Ukraine, the State Financial Monitoring Service of Ukraine, the State Fiscal Service of Ukraine and the State Service for Special Communications and Information Protection of Ukraine.

The statement added: “The development and implementation of all these measures will also include boosting international cooperation to establish a comprehensive regulation of the cryptocurrencies circulation and to avoid the criminalization of this segment.”

The statement also made a mention of a state sponsored cryptocurrency.

Richard Newman

Richard is the Editor-in-chief of Bitcoin Journal. He has over 10 years of experience with the news industry mainly handling the editorial cycle.

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