Fun

Ukraine to Oversee Crypto Transactions Above $1,200, Sees Opportunities in Legalization Not Risks

News Feed - 2020-01-27 11:01:40

Ukraine to Oversee Crypto Transactions Above $1,200, Sees Opportunities in Legalization Not Risks


Cryptocurrency transactions in Ukraine will be strictly monitored by the state, although the country’s finance minister admits that it’s not digital coins but fiat cash that criminals and corrupt officials are more likely to use. The legalization of cryptocurrencies remains a priority in Kiev as the government has indicated its clear understanding that the benefits outweigh the risks.


Also read:New Ukrainian Law Says ‘Virtual Assets’ Can Be Used for Payments Exchanges and Banks to Collect and Keep User Data


Operations conducted by crypto companies and other entities dealing with digital assets will be examined and verified by Ukraine’s financial regulators, Minister Oksana Markarova announced during a recent press conference. All crypto-related transactions worth 30,000 hryvnias or more, the equivalent of approximately $1,200, will be subjected to government oversight, she emphasized while briefing Ukrainian media about the newly adopted anti-money laundering rules. Oksana Markarova


Cryptocurrency exchanges, other trading platforms and banks will be obliged to collect, store and provide authorities with detailed information about the identity of their customers, both the sender and the receiver, as well as the origin of the transferred digital money. The data will be gathered only once if a user conducts the same type of crypto transactions.


If a certain transaction raises suspicion, the operator of the platform is required to notify the State Financial Monitoring Service (SFMS). The agency has been charged with establishing the origin of the cryptocurrency and according to the finance minister, the watchdog now has at its disposal “the latest analytical tool” capable of determining where the money comes from and even what it has been spent on previously.


“There have been successful cases,” Markarova said, quoted by crypto outlet Forklog. Currently, the SFMS cannot suspend crypto operations completely but it has the authority to freeze cryptocurrency wallets and seize digital assets that have been obtained illegally or which are intended for illicit purposes, if the agency gets hold of a wallet’s private keys in the course of an investigation. Parliament Finalizing Regulatory Framework for Cryptocurrencies in Ukraine


The powers of the financial monitoring service were expanded with a law transposing the FATF standards and harmonizing Ukraine’s legislation with European AML directives. It was adopted by the Verkhovna Rada in early December but its provisions will enter into force on April 24, 2020. The Financial Monitoring Bill introduces a set of legal terms pertaining to the crypto space, allocates supervisory duties and details that virtual assets can be traded, transferred and used for payments.


The law lists the different types of entities that can provide exchange, storage, sale, and transfer services for digital assets. It also updates the applicable penalties for various violations such as non-compliance with due diligence and customer identification requirements or breach of procedures for the creation and storage of documents. The maximum fine that can be imposed on these companies has been raised from 34,000 to 204,000 hryvnia (over $8,000). An expert group at the Rada’s Digital Transformation Committee is currently working to finalize the framework that will regulate the circulation of cryptocurrencies in Ukraine. Verkhovna Rada


Oksana Markarova acknowledged there’s no comprehensive data about the amount of cryptocurrency Ukrainian citizens currently hold but experts believe the volume is quite high. According to a 2018 survey, 13% of internet-savvy Ukrainians owned digital coins. It was estimated that the daily turnover on the top three cryptocurrency exchanges operating in the country reached $2 million. Two of the platforms, Exmo and Kuna, already have anti-money laundering and know your customer policies in place while the world’s leading exchange Binance recently opened an account with Ibox Bank providing Ukrainians access to global markets.


Ukraine’s finance minister, representing the country’s young administration that came to power after the election of President Volodymyr Zelensky, thinks the legalization of crypto operations can bring positives to the Ukrainian economy which outweigh the risks of using cryptocurrencies for money laundering. “I think that our criminals and corrupt officials are quite conservative and still keep funds mostly in cash. Therefore, in the legalization of cryptocurrencies, I see opportunities for the development of this industry in our country, and not a threat,” Markarova stated in an interview with the online magazine MC Today.


Cryptocurrency exchanges and digital coin issuers were recently listed among the “key players of the financial ecosystem” in Ukraine’s new Financial Sector Development Strategy 2025. The document, prepared by the country’s financial regulators, including the National Bank and the Finance Ministry, also mentions blockchain development as one of five “strategic goals” of innovation growth.


Do you think Ukraine will attract more crypto businesses by providing greater regulatory clarity for the industry? Share your expectations in the comments section below.


Images courtesy of Shutterstock.


You can now purchase bitcoin without visiting a cryptocurrency exchange. Buy BTC and BCH directly from our trusted seller and, if you need a bitcoin wallet to securely store it, you can download one from us here. Share this story: Tags in this story Cryptoconomy, due diligence, Exchanges, Finance Minister, fines, Identification, Law, Laws, Legislation, Money Laundering, Oksana Markarova, opportunities, Oversight, penalties, Regulations, Regulators, risks, transactions, Ukraine, ukrainian, Verification Related Iran Issues More Than 1,000 Cryptocurrency Mining Licenses REGULATION | Kevin Helms


The Iranian government has reportedly issued more than 1,000 licenses for cryptocurrency mining since it began regulating the industry. A… read more. Indian Supreme Court Warms Up to Crypto as RBI Defends Its Ban Power REGULATION | Kevin Helms


India"s supreme court heard the crypto case on Thursday, starting with the arguments by the counsel for the Reserve Bank… read more. Lubomir Tassev


Lubomir Tassev is a journalist from tech-savvy Bulgaria. Quoting Hitchens, Lubomir says: ”Being a writer is what I am, rather than what I do.“ International politics and economics are two other sources of inspiration. Please enable JavaScript to view the comments powered by Disqus.

News Feed

US Regulator: Investors Reported Losing Over $1 Billion in Crypto to Scams Since 2021
US Regulator: Investors Reported Losing Over $1 Billion in Crypto to Scams Since 2021 The U.S. Federal Trade Commission (FTC) has revealed that more than 46,000 people have reporte
Charles Schwab Strategist Skeptical of Crypto — Puts Faith in Banking System, Federal Reserve
Charles Schwab Strategist Skeptical of Crypto — Puts Faith in Banking System, Federal Reserve Charles Schwab’s chief investment strategist says she puts
Lido Finance Partners With KyberSwap Elastic to Enhance Liquidity on Polygon With Over $120,000 in Liquidity Mining Rewards
Lido Finance Partners With KyberSwap Elastic to Enhance Liquidity on Polygon With Over $120,000 in Liquidity Mining Rewards sponsored Singapore — August 17th –Lido Fin
Tomer Warschauer Nuni11 hours agoGenerative AI will disrupt blockchain too: Here’s howArtificial intelligence isn’t just generating lots of content these days, but equally, lots of excitement too.1382 Total views3 To
Crust Network Launches Crust Storage Market, Decentralized Cloud Service Built on Polkadot
Crust Network Launches Crust Storage Market, Decentralized Cloud Service Built on Polkadot PRESS RELEASE. One of the star projects of the emerging Polkadot ecosy
Passive Income Cyborgs: Battle Borgz Publicly Launches on KICK․IO
Passive Income Cyborgs: Battle Borgz Publicly Launches on KICK․IO press release PRESS RELEASE. NFTs are not a temporary trend. NFTs are here to stay.
Deutsche Bank to Exit Russia, Says There Will Be No New Business There
Deutsche Bank to Exit Russia, Says There Will Be No New Business There Germany’s Deutsche Bank has become the latest financial services giant to confirm it’s leaving
ZKasino users fuming as $33M in promised refunds are instead sent to Lido
Jesse Coghlan4 hours agoZKasino users fuming as $33M in promised refunds are instead sent to LidoOn-chain data shows ZKasino moved $33 million worth of users’ bridged ETH to Lido, while users claim it rescinded a plan
CoinEx Charity’s Effort to Support Education Is Appreciated by Kacuv
CoinEx Charity’s Effort to Support Education Is Appreciated by Kacuv press release PRESS RELEASE. Recently, CoinEx Charity has kicked off its second educational welfare program in
Industry veterans share praise, skepticism, as Ethereum Dencun upgrade goes live
Zhiyuan Sun8 hours agoIndustry veterans share praise, skepticism, as Ethereum Dencun upgrade goes liveThe much-anticipated upgrade was several years in the making for its final debut on March 13.1289 Total views29 Total
4 Hottest Presales to Buy in January for Maximum Gains
Este artículo también está disponible en español. As a crypto investor, there are several reasons to be excited about the bullish momentum of the market in the coming mon
SEC pushes back against Coinbase's 'overly broad' discovery requests
Martin Young4 hours agoSEC pushes back against Coinbase"s "overly broad" discovery requestsThe regulator claims that Coinbase"s document discovery requests are overly broad and disproportionate to the needs of the case.7