Financial regulators in Ukraine are going to launch a working group to look into cryptocurrency regulation.

During a recently held meeting of the National Cybersecurity Coordination Center, Secretary of the National Security and Defense Council (NSDC) of Ukraine Oleksandr Turchynov said that the development of the cryptocurrencies market cannot be left out of the state's attention.

The meeting particularly focused on the problems related to the uncontrolled circulation of cryptocurrencies in Ukraine. Officials of the National Bank of Ukraine, the Security Service of Ukraine and the National Police of Ukraine, believe that the lack of external and internal control over the cryptocurrencies turnover and anonymity of payments create prerequisites for their use in illicit activities.

Accordingly, the National Cybersecurity Coordination Center called upon relevant authorities to set up a working group on these lines.

The working group will include representatives from the 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 key focus areas are “to develop legal proposals for regulating this issue; to define the state regulator and the order of functioning of the cryptocurrencies market; to establish the order of monitoring transactions with the use of cryptography and identification of subjects of cryptocurrency transactions; as well as to set up the procedure for taxation of income from transactions using cryptocurrencies in accordance with the requirements of Ukrainian legislation.

In addition, the authorities have also been tasked with the development of a mechanism that will ensure access of law enforcement bodies to the data of cryptocurrency exchanges.

“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 release stated.