Ukraine Signals Blockchain Government – But Bans Bitcoin?


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According to an article in Cointelegraph the Ukrainian government is going to create a blockchain-powered auction system and then study ways to integrate blockchain technology for various public services such as personal identification, public records, banking, etc.

Bitcoin Foundation Ukraine and KUNA Bitcoin Agency are expected to announce a Ukrainian blockchain project to set up an E-Governance system in Odessa, Ukraine.

The corresponding memorandum was already signed by the First Deputy Head of Kyiv Regional State Administration Lev Partskhaladze, said KUNA founder, Michael Chobanyan to CoinTelegraph. Now Odessa Oblast may become the first administrative center to adopt blockchain technology for governance. Though it has not yet been confirmed just exactly which “blockchain” will be implemented.

As the first step in the project, Bitcoin Foundation Ukraine will hold a government real estate auction on the blockchain. It will ensure fair, transparent auction and eliminate the chance of document forgery. This blockchain-powered auction system is currently in the pilot stage.

According to the signed memorandum, the local IT-community will help develop the project in Odessa. They will study ways to integrate blockchain technology for various public services such as personal identification, public records, banking, etc.

The official announcement will be aired on Ukrainian TV, which can be seen later here.

However the Ukrainian government has taken a bitter pill on bitcoin – just recently, on November 3, 2015,  Ukrainian cybercrime police raided the home of the founder of Bitcoin Foundation Ukraine, Michael Chobanyan.

“The police raided by apartment looking for the bitcoins and proof that I somehow engage with bitcoin. This was quite obvious, I never made it a secret, I am a very public man and I spend a lot of time promoting bitcoin in Ukraine… I had already provided the authorities with the evidence they needed; in May 2015 I went to the local prosecutor, I gave them all the evidence about me and what I do to show that it is not illegal… The National Bank of Ukraine said that they were looking closely at the subject and that bitcoin is not illegal; in this country whatever is not illegal is legal.”

And according to Ukraine’s  National Commission for State Regulation cryptocurrency is illegal:

The National Commission for State Regulation of Financial Services Markets informs market participants information on the prohibition of the use and dissemination of “virtual currency / cryptocurrency (Bitcoint, Litecoint, Ripple, OneCoint etc.) In Ukraine.

About Richard Kastelein

Founder of industry publication Blockchain News, partner at ICO services collective CryptoAsset Design Group (helped raise over $200m+), director of education company Blockchain Partners (Oracle Partner) and ICO event organiser at leading industry event  CryptoFinancing (first ICO event in Europe) - Richard Kastelein is an award-winning publisher, innovation executive and entrepreneur. He sits on the advisory boards of half a dozen Blockchain startups and has written over 1200 articles on Blockchain technology and startups at Blockchain News and has also published pioneering articles on ICOs in Harvard Business Review and Venturebeat.
Kastelein has spoken (keynotes & panels) on Blockchain technology in Amsterdam, Antwerp, Barcelona, Beijing, Brussels, Bucharest, Dubai, Eindhoven, Gdansk, Groningen, the Hague, Helsinki, London, Manchester, Minsk, Nairobi, Nanchang, San Mateo, Shanghai,Tel Aviv and Venice. His network is global and extensive.
He is a Canadian (Dutch/Irish/English/Métis) whose writing career has ranged from the Canadian Native Press (Arctic) to the Caribbean & Europe. He's written occasionally for Harvard Business Review, Wired, Venturebeat, The Guardian and and his work and ideas have been translated into Dutch, Greek, Polish, German and French.
A journalist by trade, an entrepreneur and adventurer at heart, Kastelein's professional career has ranged from political publishing to TV technology, boatbuilding to judging startups, skippering yachts to marketing and more as he's travelled for nearly 30 years as a Canadian expatriate living around the world.
In his 20s, he sailed around the world on small yachts and wrote a series of travel articles called, "The Hitchhiker's Guide to the Seas' travelling by hitching rides on yachts (1989) in major travel and yachting publications. He currently lives in Groningen, Netherlands where he's raising three teenage daughters with his wife and sailing partner, Wieke Beenen.

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