Cryptocurrency monitoring in Ukraine postponed until its order is approved

On April 28, the law on combating money laundering and the financing of terrorism came into force in Ukraine.however, its provisions onfinancial monitoring of cryptocurrency operations will not be applied so far. This was announced to ForkLog by representatives of the interfactional deputy association (MFI) Blockchain4Ukraine.

The law includes a provision on virtualassets (VA) as property that can be used for payment and investment purposes. The document was the first to introduce the terminology of the cryptocurrency market into the legislative field of Ukraine.

Within three months of the transition period, until July 28, the Ministry of Digital Transformation should additionally develop a procedure for conducting VA financial monitoring.

«Ministry of Digital Development as a state subjectFinancial Monitoring is currently finalizing this document and is coordinating it with the Ministry of Finance and the State Financial Monitoring Service. After the Cabinet of Ministers approves this procedure, all primary financial monitoring entities will begin to conduct financial monitoring of virtual assets»,- said representatives of the Blockchain4Ukraine microfinance organization.

In parallel, the participants of the association together withThe Ministry of Digital Development is developing a basic bill regulating the virtual asset market in Ukraine and is coordinating it with relevant government agencies. It is expected that within two weeks the bill will be submitted for public discussion, after which it will be registered in the Verkhovna Rada.

«This law launches the VA market, and weWe hope for a quick consideration of it by parliament, since virtual assets in the context of a fall in GDP due to the coronavirus pandemic can support the Ukrainian economy»,— Blockchain4Ukraine emphasized.

Significantly tightened compliance controlsAML requirements are prescribed in the Fifth EU Anti-Money Laundering Directive (5AMLD EU) adopted in July 2018. The EU member states and Ukraine, which is following the path of European integration, are obliged to introduce the relevant rules into national laws no later than January 20, 2020.

In turn, the Financial Action Development GroupAnti-Money Laundering (FATF) demanded that anti-money laundering measures be extended to cryptocurrency service providers - exchanges and exchangers - by the end of June 2020.

The adoption of the amendments was connected with this.

Earlier, ForkLog dealt in detail which operations with digital assets will be verified in accordance with the law on financial monitoring and which documents may require a cryptocurrency owner.