Ukraine Rolls Out Cybercrime Bill That Defines Illegal Use Of Cryptocurrencies

The authorities of Ukraine have recently rolled out a new bill combating cybercrime that also describes the procedure for the confiscation of cryptocurrencies obtained illegally.

In September 2020 the Verkhovna Rada of Ukraine, the unicameral parliament of Ukraine, registered a bill "On Amendments to the Criminal Procedure Code of Ukraine on Improving the Efficiency of Combating Cybercrime and the Use of Electronic Evidence". This bill introduces the list of measures that can be taken to fight cybercrime in Ukraine.

When cryptocurrencies can be confiscated

One of the points of the bill explains the cases when cryptocurrencies can be confiscated by official forces. 

Now if cryptocurrencies are obtained as a result of illegal activities the authorities can withdraw it. Among the illegal uses of cryptocurrencies mentioned: money laundering, corruption, financing of crime, the use as a means of committing a criminal offence. The exceptions are cases when their helder of cryptocurrency “did not know or could not have known” about their illegal use.

Tracking user traffic on the internet

The bill also briefly explained a procedure that allows law enforcement to access user traffic information from internet providers and operators. 

Moreover, it obliges internet providers to install the technical means necessary to track the information about the user activities on the internet. 

In August 2020, Coinidol.com has already reported that the lack of regulation on the Ukrainian cryptocurrency market makes it attractive for those wishing to take advantage of it for criminal purposes. Law enforcers exposed a gang that has laundered about $42 million using cryptocurrency.

Before that Ukraine generally demonstrates a friendly stance to blockchain and cryptocurrency. The government has even considered using the energy surplus for mining Bitcoin and other cryptocurrencies.