Ukraine to enforce FATF requirements for regulating cryptocurrencies
Ukraine has announced its intention to implement the requirements set forth by the Financial Action Task Force (FATF) regarding cryptocurrencies. Yulia Parkhomenko, the director of the virtual assets department at the Ministry of Digital Transformation of Ukraine, made this announcement in a Facebook post on December 11, 2023. The purpose of this implementation is to ensure that Ukraine complies with international standards and avoids being included on FATF’s grey list.
Parkhomenko emphasized the importance of financial monitoring in the fight against terrorism and money laundering. Failure to comply with international rules could result in Ukraine being placed on the grey list. Currently, Ukrainian law does not cover cryptocurrencies, which means that the activities of crypto exchanges in the country are unregulated.
To address this issue, the Ukrainian government is considering draft law No. 10225-1, which aims to establish a comprehensive regulatory framework for cryptocurrencies. This draft law, currently under review by the Ukrainian Parliament (Verkhovna Rada), would require crypto exchanges to register with the government, conduct customer due diligence, and report suspicious transactions.
By implementing the FATF’s crypto standards and enacting comprehensive regulations, Ukraine aims to create a favorable environment for crypto businesses to operate in the country. This move is seen as a crucial step towards strengthening Ukraine’s position in the global crypto market and ensuring compliance with international norms.
In related news, Turkey is also seeking to exit FATF’s grey list by introducing crypto licensing and taxes. The FATF’s standards play a significant role in shaping the regulatory landscape for cryptocurrencies worldwide.
