The deputy head of the regional service centre of the Ministry of Internal Affairs in Mykolaiv region found himself at the centre of a scandal after he declared cryptocurrency worth an astronomical UAH 100 million, but failed to provide evidence of its existence. This case draws attention not only to the use of cryptocurrencies by public officials, but also to the transparency and reliability of such declarations.
Viktor Pavlushchyk, Head of the National Agency for the Prevention of Corruption (NAPC), said in an interview with Glavkom that every year more and more Ukrainians, including civil servants, declare funds in cryptocurrencies. This is evidence of the growing popularity of this type of asset, which is beginning to be perceived on a par with cash and bank deposits.
“Every year, the amount of funds declared in cryptocurrencies is increasing: they are used by both ordinary people and civil servants. If a few years ago nobody knew about them, now it is the same type of accumulation as cash or funds in bank accounts,”Pavlushchyk said.
Nevertheless, he said, cryptocurrencies, like other assets, can be tracked using the blockchain. This allows regulatory authorities to monitor and verify whether the declared funds correspond to the real lifestyle. Pavlushchyk also stressed that the NACP actively records cases of violations in the declaration of cryptocurrencies.
A striking example was a recent investigation in which an official declared significant assets in cryptocurrency but was unable to confirm their existence with documents. This raises suspicions about the veracity of the data provided and possible corruption schemes.
In addition to this, Pavlushchyk said that starting from 11 October, the NACP is introducing a new system of automated filling of declarations, which will allow civil servants to significantly simplify the process of submitting information about their income and assets, as up to 75% of the data will be automatically filled in by the system. This innovation is aimed at increasing transparency and fighting corruption in Ukraine.
