The government approved a bill to ban pyramid schemes in Ukraine. The corresponding decision was adopted at a meeting of the Cabinet of Ministers on March 11, the press service of the Cabinet reports.

The document was developed by the National Commission, which carries out the state regulation of financial services markets.

The press service of the Cabinet of Ministers noted that cases of fraud by financial pyramids have increased in recent years in Ukraine. However, the current legislation inadequately protects citizens from such transactions. In particular, the law of Ukraine "On protection of consumers' rights" can not be applied in this case, because according to its standards, citizens, who invest their money, can not be considered as consumers. Moreover, in practice such pyramids has no registration of a legal entity or individual - entrepreneur. Thus, the provisions of the law of Ukraine "On protection of consumers' rights" can not be applied to the pyramid schemes, because their participants are not entities, which are subjects to the norms of the law, the government added.

Therefore, the government approved the bill, which aims to ban the activities of pyramid schemes in Ukraine and to determine the responsibility for the organization of such fraud by means of citizens.

It is also planned to establish criminal liability for organizing or facilitating the work of pyramid schemes.

"By the way, the maximum penalty for the intentional creation of pyramid schemes by a group of individuals envisages in the form of imprisonment for up to eight years with confiscation of property," the press service said.

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