Ukraine backs prison terms for concealing cryptocurrency holdings worth more than $40,500

On 15 April, the Verkhovna Rada of Ukraine approved in the first reading a bill, which reinstates criminal liability for officials’ false declarations. The measure was supported by 283 deputies.

The current draft of the bill proposes a maximum imprisonment of up to two years and a fine [simple_tooltip content=’от 3000 до 4000 необлагаемых минимумов доходов граждан (1135 грн или $40,5 в 2021 году)’]от $121 700 до $162 300[/simple_tooltip] (here and below at the rate in effect at the time of writing), if a civil servant does not declare assets or real estate worth [simple_tooltip content=’от 500 до 2000 прожиточных минимумов для трудоспособных лиц (2270 грн или $81,1 в 2021 году)’]от $40 500 до $162 300[/simple_tooltip].

If the value of undeclared assets exceeds [simple_tooltip content=’свыше 2000 прожиточных минимумов для трудоспособных лиц’]$162 300[/simple_tooltip], a government employee faces up to two years’ imprisonment or a fine [simple_tooltip content=’от 4000 до 5000 необлагаемых минимумов доходов граждан’]от $162 300 до $202 800[/simple_tooltip].

Failure to provide a declaration by civil servants and local government officials is also punishable by up to two years in prison.

The bill provides that a violator cannot be exempt from criminal liability even in cases of remorse, cooperation with investigators and restitution of damages.

Earlier, ForkLog reported that in the 2020 declarations Ukrainian officials declared a combined total of 46 351 BTC. Later, one deputy described the information about possessing 18 000 BTC as erroneous.

Representatives of the National Agency on Corruption Prevention (NACP) intend to verify officials who own cryptocurrency, including the origin of funds for purchasing digital currencies.

The Public Union “Virtual Assets of Ukraine” proposed to Alexander Novikov, head of the NACP, to include in declarations the addresses of non-custodial cryptocurrency wallets and verification data of custodial wallet owners to minimise money-laundering risks.

Subscribe to ForkLog news on Telegram: ForkLog Feed — full feed, ForkLog — the most important news, infographics and opinions.