Ukraine Imposed Penalties for Illegal Enrichment with Cryptocurrencies

The document signed on November 25 introduces article No. 368-5 on illegal asset enrichment into the Criminal Code of Ukraine, meaning the officials’ funds exceeding legal income by 6,500 tax-free minimums (~4070USD).

The law makes no difference for fiat or digital currencies, securities or other property. Responsibility for any unearned income is identical. Violators of the current legislation face up to 10 years in prison.

What is the gist of the new law?

Ukrainian officials are now de facto prohibited from holding and trading if the difference in their investment portfolio and real earnings is 500 times bigger than subsistence minimum in Ukraine.

The lawsuit against civil servants will be considered by the Supreme Anti-Corruption Court. Violators face confiscation of illegally acquired assets. The limitation period for such cases will be 4 years.

Ukraine began doing the regulation of cryptocurrencies. We already wrote that the government has concluded a memorandum with the cryptocurrency exchange Binance on the creation of an effective national crypto policy. The country is also taking steps to effective income-tax from virtual currencies.

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