A Ukrainian hacker got caught selling confidential information gathered from Ukrainian central government databases. According to a media release from the Ukrainian Cyberpolice, a hacker whose identity was not disclosed was able to break into many government databases by compromising personal accounts of authorized staff. The hacker reportedly used brute force approaches to break into email addresses and social media accounts. Through this simple method, he appears to have found 50 government databases with up-to-date information. He then sought to sell the captured information on hacker forums in exchange for cryptocurrency. Authorities did not disclose which currency was used. The …

Ukraine is getting closer to providing a legal status for cryptocurrencies like Bitcoin (BTC) with a new draft bill published on Monday. On May 18, the Ministry of Digital Transformation of Ukraine published a new draft bill “On Virtual Assets” that aims to determine the legal status of crypto assets, rule of their circulation and issuance in the country. The current version of the bill is not final and is open for discussion by the crypto community until June 5, 2020. Crypto industry in Ukraine is still in “grey zone” According to one of the co-authors of the new draft …

Cryptocurrency mining is a contemporary and efficient way to use excess energy, Ukraine's Ministry of Energy argued in a May 6 statement published on Facebook. According to the post, local nuclear plants have generated the surplus due to the COVID-19 lockdown. The course toward digitalization The bureau is now looking to apply progressive solutions to avoid wasting energy as part of the government’s course toward digitalization championed by president Volodymyr Zelensky. Leaving the situation unchanged might create “conditions for corruption offenses, which will ultimately be paid at Ukrainian citizens’ expense”, the ministry warns. Crypto mining, in turn, could prove to …

The Swedish government is reacting to an alleged Bitcoin fraud scheme that targeted vulnerable people in Sweden, Australia, New Zealand and the U.K. Ukrainian officials were informed of the allegations in a meeting on March 2, according to an Organized Crime and Corruption Reporting report published on March 3. Foreign policy consequences of the fraud Swedish Minister of Foreign Affairs Ann Linde championed an investigation published by national newspaper Dagens Nyheter (DN). The article alleges that the Ukraine-based Milton Group, ostensibly an IT support company, defrauded victims in developed countries by proposing fake Bitcoin (BTC) investment schemes. The group reportedly …

The Ukrainian National Agency on Corruption Prevention (NACP) detailed how cryptocurrencies must be reported on yearly income declarations. Cryptocurrencies are categorized under the “intangible asset” section, though they are also mentioned by name. On March 2, the agency published a set of instructions on how to report ownership of various types of assets in a yearly income declaration. The declaration is mostly intended for government officials, though it must also be submitted by individuals with foreign income and freelancers without a business registration. Cryptocurrencies must be reported under the “intangible assets” section, which generally includes objects with an undefined value, …

A whistleblower has revealed the existence of a 200-employee Ukrainian Bitcoin (BTC) trading scam that netted $70 million in 2019. The whistleblower outed the scam by providing footage and internal company documents to Swedish newspaper Dagens Nyheter, which reported the news on March 1. The scam predominantly targets investors based in Australia, New Zealand and the United Kingdom by using fake news articles advertised on Facebook and some mobile game platforms. The stories feature interviews with celebrities who purportedly made a killing by investing in crypto — including Gordon Ramsey, Hugh Jackman and Martin Lewis. Ukrainian company Milton Group accused …

At a press conference held on Feb. 21, a representative for the National Bank of Ukraine released the results of its much-hyped central bank digital currency project called the e-hryvnia. However, the banking institution is still not certain of the impact this financial offering will have on the country’s overall financial stability as well as on its local banking market. An official statement released by the NBU clearly states that if a massive chunk of the Ukranian population were to switch to this ambitious digital currency, the nation’s banking ecosystem “may cease to be a major financial intermediary.” Furthermore, to …

In Kyiv, Ukraine, investigators have found another example of someone using the systems at their workplace for illicit cryptocurrency mining. The Kyiv Prosecutor’s Office official Facebook page announced on Feb. 26 that it concluded a pre-trial investigation against an unnamed individual in collaboration with the State Bureau of Investigation. The accused miner was an information technology specialist that held executive positions in the State Judicial Information Systems for a long time. According to the Prosector’s Office, he illegally used the network equipment and systems to mine crypto with malware installed on the machines. Furthermore, the defendant also allegedly provided placement …

Recently, financial regulators around the world have been growing concerned about the role of cryptocurrency in money laundering and financing of various illicit activities. The first two months of 2020 saw many governments acting on these concerns and introducing a variety of legal measures designed to bolster their defenses against financial cybercrime allegedly facilitated by the use of digital money. Russia has become the latest of the major jurisdictions to make a move in this direction, as the Central Bank of Russia unveiled last week a revised set of indicators by which financial institutions are advised to recognize suspicious transactions …

Despite considerable testing and research, the prospect of a central bank digital currency (CBDC) still raises significant concerns for bankers in Ukraine. At a Feb. 21 conference in Kyiv, the National Bank of Ukraine (NBU) presented the results of testing its CBDC project, the e-hryvnia, noting that the bank is continuing to look into issuing its own CBDC. However, the central bank apparently is still concerned about such a currency’s effect on financial stability as well as the possible threat to the traditional banking system. An official announcement by the NBU reads: “The banking system may cease to be a …

In an apparent first, Ukrainian cryptocurrency exchange Kuna has released a stablecoin pegged to local fiat currency, the Ukrainian hryvnia (UAH). Dubbed UAX token, the new stablecoin is pegged to the hryvnia on a 1:1 ratio and is based on the Ethereum blockchain, according to an official announcement by Kuna exchange on Feb. 20. According to Kuna, UAX is now being tested by select Kuna users in an open beta that will last until March 20, 2020. The aim of the first phase of UAX implementation is to integrate with market players, technical testing on decentralized finance platforms as well …

Ukrainian authorities said that crypto mining does not require regulatory activity from governmental oversight bodies or other third-party regulations. In its manifest on virtual assets published on Feb. 7, the Ministry of Digital Transformation of Ukraine stated that mining does not require regulation by state authorities as this activity is regulated by the protocol itself and network members. The regulator’s contribution to the industry The agency further outlined that it will contribute to the development and implementation of decentralized technologies, as well as establish sandboxes for their evaluation and verification, and assessment of potential risks to the market. The agency …