Ukraine considering possibility of issuing its own cryptocurrency

The National Bank of Ukraine (NBU) is considering the possibility of issuing its own cryptocurrency, as stated in a message on the website of the National Security and Defense Council (NSDC) of Ukraine.

During a meeting of the National Coordinating Council for Cybersecurity, NSDC Secretary Oleksandr Turchynov stated that "the development of the cryptocurrency market cannot remain without the attention of the state." Following the meeting, the authorities issued orders to create a working group that will work on the development of regulatory and legal proposals for Ukrainian cryptocurrency.

The instructions included the designation of a state regulator and procedures for the functioning of the cryptocurrency market, procedures for monitoring transactions that use cryptocurrencies, and the identification of entities involved in cryptocurrency transactions. Moreover, it mandated the determination of procedures for taxing revenues from the implementation of cryptocurrency transactions in accordance with the requirements of Ukrainian legislation.

The report indicated that the National Bank of Ukraine, the Security Service of Ukraine (SBU) and the National Police believe that lack of control over the trade of cryptocurrency and the anonymity of payments "create threats to the economy and state security."

In June 2017, the National Bank of Ukraine proposed to create an electronic analogue of the hryvnia using blockchain technology. The release of the Ukrainian cryptocurrency was supposed to be organized as part of the “Cashless economy” project. The National Bank noted that its having a national cryptocurrency would create a "government-wide transparent and highly efficient payment platform with minimal transaction costs and an almost instantaneous transfer rate."

  Ukraine, cryptocurrency