Cryptocurrencies in political financing were discussed in Ukraine: the experience of Moldova and Romania
Experts highlighted the challenges associated with transaction anonymity, as cryptocurrencies make it easy to conceal the origin of funds and circumvent legal restrictions on foreign or anonymous contributions. Participants analysed the Ukrainian context and assessed the readiness of domestic institutions to monitor the use of virtual assets in political financing.
NAZK Chairman Viktor Pavlushchyk noted that this is a new area for the agency, but there is already experience of working with cryptocurrencies during the verification of officials’ declarations. He emphasised the importance of clearly defined rules for the disclosure of cryptocurrencies in political parties’ financial reports, as well as the development of tools for oversight and cooperation with cryptocurrency platforms and financial institutions.
Hanna Chornutska, Head of the NACP’s Department for the Integrity of Political Financing, explained the main differences in the methodology for verifying political parties’ reports and public officials’ declarations. The main challenge remains establishing the identity of the contributor, as only the wallet number is visible in cryptocurrency transactions, not the user’s name. Another heightened risk is fluctuations in cryptocurrency exchange rates, which could lead to contribution limits being exceeded, particularly during the transaction processing stage.
Participants at the event emphasised the need to strengthen international coordination and data exchange between countries to ensure the transparency of political finance. They highlighted the importance of combating the use of cryptocurrencies to finance political parties in ways that undermine democratic processes and harm the stability of state institutions.
The event was organised as part of the U-VOTE project, supported by Norway and implemented by the International Institute for Democracy and Electoral Assistance (International IDEA), and brought together representatives from the National Agency for Corruption Prevention (NAZK), the Central Election Commission, the National Police of Ukraine, the Security Service of Ukraine, as well as international experts from Moldova and Romania.
As a reminder, Bitcoin fell to $66,348, losing up to 4.4% after a brief rise above $70,000. The fall came amid investor fears of a protracted conflict in the Middle East following US and Israeli strikes on Iran.
