Head of Ukrainian Cyber Police Advocates for Regulating Cryptocurrencies

Ukraine’s head of cyber police has raised concerns about the ongoing criminal activity that is taking place within the cryptocurrency sphere and is calling for regulating it. Oleksandr Grinchak stated during an interview with RBC that regulating the crypto industry would significantly help authorities monitor illegal transactions.

The official says that most crimes can be associated with digital assets, such as murders and drug trafficking, due to the anonymous nature of transactions done through Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned). In this sense, blockchain is immune to the manipulation of data, making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamp Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned). In this sense, blockchain is immune to the manipulation of data, making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamp Read this Term. However, he clarified that it often does not possess a tough hurdle for the police to investigate criminals.

“We have contact with each liaison officer at the embassies located on the territory of Ukraine. We are as close as possible to the United States, Britain, the countries of the European Union, primarily France and Germany. Now we are trying to establish communication with China. Because a lot of crimes are related to cryptocurrency, and it all came out of China, this is its primary source,” Grinchak said about the origin of most of the crypto-related crimes that hit Ukraine’s citizens.

Difficulties on Investigating Crypto Mining-Related Crimes

He even mentioned during the interview that Ukraine’s parliament, Verkhovna Rada, has supported his office’s advocation to regulate the Cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term in the country. “The mining sector is not regulated in any way in Ukraine: Not one regulatory document is currently in existence. All we can charge illegal miners with is stealing electricity,” the head of the Ukrainian cyber police added about the hurdles its office face on investigations related to crypto mining.

Still, Grinchak pointed out that the bureau constantly communicates with crypto exchanges through its specialists in blockchain analytics to identify criminals that arrange illegal transactions. Additionally, the cyber police stated that many criminals rely on hiding their digital identities behind VPN providers from Russia. Moreover, the office has been in touch with Telegram to help crack down groups with the illicit trade of goods and services with cryptos.