December 11, 2023

Ukraine will track suspicious cryptocurrency transactions worth more than $ 1200

As stated by the Minister of Finance of Ukraine, the regulator will monitor cryptocurrency transactions amounting to more than$ 1200. Suspicious transactions will be blocked, and crypto assets - confiscated.

Minister of Finance of Ukraine Oksana Makarova discussedquestions about the cryptocurrency industry in an interview with MC Today. Makarova commented on the law signed last month by the country's President Volodymyr Zelensky, which strengthens anti-money laundering practices in Ukraine in accordance with the latest FATF recommendations.

For the first time, the Ukrainian anti-money laundering lawmoney includes cryptocurrencies as a supervised asset. In accordance with the law, the financial regulator will monitor suspicious cryptocurrency transactions of more than 30,000 hryvnia or $1,200.

“If exchanges, exchangers, banks or other companiesmake payments in cryptocurrencies in the amount of more than 30,000 hryvnia, they must verify such a transaction and collect detailed information about clients,” — Makarova said in an interview. “The client must provide comprehensive information about the origin and purpose of the crypto assets.”

If such an operation seems suspiciouspayment service provider, the firm is required to report the transaction to the financial regulator — State Financial Monitoring Service. According to Makarova, the regulator will have the right to block suspicious transactions and even confiscate cryptocurrencies.

"State Financial Monitoring Servicehas access to an analytical product that allows you to study the origin of cryptoassets and their use,” — said the Minister of Finance. “It is now impossible to stop operations, but it is possible to block cryptocurrency wallets and confiscate illegally obtained crypto assets. This can be done by accessing the private keys of cryptocurrencies, which will be possible as a result of complex investigations.”

Cryptocurrencies as an asset class do not yet havedefinitions in the legislation of Ukraine. Makarova said a working group involving several national agencies is expected to develop new regulations for virtual assets in Ukraine “over the next four months.” A bill proposing a 5% tax on income from cryptocurrency transactions was already introduced into the Ukrainian parliament in November. In addition, last September, the Minister of Digital Transformation of Ukraine, Mikhail Fedorov, proposed legalizing cryptocurrencies in the country.

Official statistics on circulation volumesThere are no cryptocurrencies in Ukraine. However, the Finance Minister believes this volume is "quite high", although the majority of money laundering in the country is still carried out in cash.

"I think that criminals and the corruptofficials are quite conservative and still keep funds in cash,” — Makarova said. “Therefore, in the legalization of cryptocurrencies, I see opportunities for the development of this industry in our country, and not a threat.”