Ukraine to regulate crypto with FATF requirements

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Ukraine will implement FATF’s necessities on crypto in a bid to keep away from inclusion on the gray checklist.

Yulia Parkhomenko, director of the digital belongings division on the Ministry of Digital Transformation of Ukraine, stated in a Facebook post on Dec. 11, 2023, that the nation will implement crypto requirements developed by the Monetary Motion Process Pressure (FATF) as a way to adjust to worldwide requirements.

Parkhomenko defined that monetary monitoring is important to combating terrorism and cash laundering, noting that Ukraine is risking being positioned on FATF’s gray checklist ought to the nation fail to adjust to worldwide guidelines.

“If we don’t adjust to FATF suggestions, there’s a danger that Ukraine and Ukrainian companies can be positioned on the FATF grey or black checklist.”

Yulia Parkhomenko

Parkhomenko identified that the present regulation doesn’t apply to cryptocurrencies as a result of Ukraine doesn’t but have a complete regulation regulating them. Consequently, the actions of crypto exchanges within the nation aren’t regulated.

“The implementation of monetary monitoring of operations with digital belongings is feasible provided that the brand new market is sufficiently regulated. If ineffective regulation is launched, there’s a danger that the market won’t launch — service suppliers [crypto exchanges] won’t register in our jurisdiction or will proceed to function within the shadows.”

Yulia Parkhomenko

In line with the Ukrainian official, the regulatory norms outlined within the draft regulation No. 10225-1 can create all the mandatory situations for the operation of crypto companies in Ukraine.

The draft regulation No. 10225-1, which is at present into account by the Ukrainian Parliament (Verkhovna Rada), is predicted to create a complete regulatory framework for cryptocurrencies. It could require crypto exchanges to register with the federal government, conduct buyer due diligence, and report suspicious transactions.

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