The Government of Ukraine has approved on the final version of a money laundering law that will handle virtual assets and virtual asset service providers (VASPs) as per the guidelines under FATF.
On Dec. 6, Ukraine’s legislative body, the Rada published a final version of the law that considers virtual assets to be a store of wealth while also recognizing its potential use in financial crimes such as: money laundering, fraud, and the financing of terrorists.
The new law includes guidelines on how they intend to monitor and regulate the trading of cryptocurrencies.
The government will only collect the public key of the sender wherein individual crypto transactions are worth less than 30,000 hriven ($1,300) for the purpose of financial monitoring. Once the transaction exceeds that amount the government will apply verification to both sender and receiver.
The process will include identity verification, as well as the verification of the nature of the business relationship.
For VASP’s the threshold sits above the 40,000 hryvnya ($1,600) price level. In that case VASP’s need to provide the authorities with information when traders are registered in jurisdictions that do not comply with anti-money laundering recommendations, such as when traders are family members when traders are foreigners, and when cash transactions occur.
Ukraine Planning On Legalizing Cryptos
An Oct. report highlighted that new administration brought renewed interest in cryptocurrencies. Ukraine’s Ministry of Digital Transformation was planning to legalize cryptocurrencies such as bitcoin cash (BCH) and bitcoin core (BTC).
The initiative to accomplish this comes directly from Mikhail Fedorov – its current head, and Alexander Bornyakov – the IT entrepreneur.
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