The Ukrainian parliament is toughening its stance on cryptocurrency holders. It criminalises people who do not make accurate statements about the cryptocurrencies in their possession. The draft law, announced by the Ukrainian parliament, provides for fines and imprisonment of up to two years.
Eastern Europe is leading the way in adopting cryptocurrencies, according to a Chainanalysis report published last year, with Ukraine at the top.
The high degree of adoption of cryptocurrencies in Ukraine comes largely from micro-investors. Ukraine does not have a stock market, but it has many educated and technologically trained citizens, who in combination with the unstable economy of the country, make its environment famous for such a degree of adoption. The bill that was tabled targets exactly these citizens.
Bitcoin in Ukraine is not recognised as a form of money; however, it is planned to submit a bill that will regulate everything related to it in the future. It was recently reported in a transparency report that public officials hold $2.6 billion worth of bitcoin. The bill tabled in the wake of these revelations does not leave these public officials, who may also face criminal prosecution, unscathed.
Vyacheslav Mishalov, a member of the Dnipro City Council, said:
“During the verification of the declaration, we will find out if the person who filed it actually holds the stated number of tokens, if the money for his purchase was actually transferred and if the person who filed the declaration can explain the origin of the money spent for the purchase of tokens.”
The head of the Compulsory Inspections Department of the National Agency for the Prevention of Corruption, Sergiy Petukhovh, said the agency would look at the figures published by the report. Petukhovh also added that while he does not own much Bitcoin, he does own some.