Ukraine to Implement FATF Crypto Standards to Avoid Grey List
In order to comply with international standards and avoid being placed on the grey list, Ukraine will implement the crypto standards developed by the Financial Action Task Force (FATF), according to Yulia Parkhomenko, Director of the Virtual Assets Department at the Ministry of Digital Transformation of Ukraine. Parkhomenko emphasized the importance of financial monitoring in combating terrorism and money laundering.
Risk of Grey or Black List
Parkhomenko warned that if Ukraine fails to comply with FATF recommendations, there is a risk of being placed on the FATF grey or black list. Currently, Ukraine does not have a comprehensive law regulating cryptocurrencies, which means that crypto exchanges in the country are unregulated.
Necessary Regulation for Financial Monitoring
Parkhomenko highlighted the need for effective regulation in order to implement financial monitoring of virtual asset operations. She stated that inadequate regulation could hinder the launch of the market and result in service providers either not registering in Ukraine or operating in the shadows.
Draft Law No. 10225-1
The draft law No. 10225-1, currently being considered by the Ukrainian Parliament, aims to establish a comprehensive regulatory framework for cryptocurrencies. It would require crypto exchanges to register with the government, conduct customer due diligence, and report suspicious transactions.
Hot Take: Ukraine Takes Steps Towards Regulatory Compliance
Ukraine’s decision to implement FATF’s crypto standards demonstrates its commitment to international regulatory compliance and combating illicit activities in the cryptocurrency space. By doing so, Ukraine aims to avoid being placed on the FATF grey list, which could have negative implications for its businesses and reputation. The proposed draft law No. 10225-1 is a crucial step towards creating a comprehensive regulatory framework for cryptocurrencies in Ukraine. If successfully implemented, it would provide much-needed clarity and oversight for crypto exchanges operating in the country, promoting transparency and security in the industry.
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