Crypto Now Subject to Ukraine’s New “Financial Monitoring” Law But FM says Working on a Special Law to Regulate Virtual Assets

Must Read

Can XRP defend its price?

Could XRP defend its price action, and rise back to $0.30? Here is my view on how...

With a 110% increase in crypto wallet adoption rates in 2020 are we set for another Bitcoin boom?

2020 has been a massive year for crypto adoption. In July alone, over 3.5 million crypto wallet app downloads...

DeepTradeBot: The innovation of large companies at your service

DeepTradeBot is a collection of automated trading tools developed by Deep Neuro Networks LTD, a London, England-based company...
- Advertisement -BTCClicks.com Banner
Earn Free Bitcoin

Ukraine has passed a new bill on Financial Monitoring to combat money laundering. With the need to combat “dirty money” increasing, the country’s Parliament approved the Financial Monitoring Bill on Dec. 6. 2019, which has been in the works for several years.

The law will go into effect on April 28, 2020.

Choosing a European integration path, Ukraine’s Finance Minister Oksana Serhiyivna Markarovs clarifies in an interview that as per the updated law, operations with virtual assets are now subject to financial monitoring in the country.

This involves companies that deal in activities related to cryptocurrencies including exchanges, storage, sale, and transfer of electronic money. If these companies process cryptocurrency payments worth more than UAH 30,000 ($1,228), they must verify such a transaction and collect detailed customer information.

The customer involved in such transaction would also have to provide comprehensive information on the origin and the destination of their digital currencies.

In case any suspicious activity is suspected, it should be reported to the State Financial Monitoring Service (SCFM).

All of these steps will ensure that these funds are not received illegally, said Serhiyivna Markarovs.

She also shared that SCFM has access to an analytical product that allows investigation into the origins of crypto-assets and their uses. Although it is impossible to stop operations, she said it is possible to block crypto wallets and remove illegally obtained crypto assets.

Legalization of Cryptocurrencies in Ukraine

Serhiyivna Markarovs says they have introduced cryptos in the law on financial monitoring and have started the process of implementing them as per the European directives and recommendations of the FATF.

Ukraine has also set up an Interagency Working Group under the VRU Digital Transformation Commission to develop a special law on regulating the virtual assets over the next four months.

The finance minister says the purpose of financial monitoring is to prevent money laundering but believes that “our criminals and corrupt officials are quite conservative and still keep the funds mostly in cash.”

As such, she sees the legalization of cryptocurrencies, whose volume in Ukraine is at a high enough level, as an opportunity for the development of the industry instead of a threat.

Meanwhile, in South Africa, another Bank might close Crypto Accounts

While Ukraine is working towards regulating cryptos and encouraging its development, South Africa is taking the opposite approach.

Big four bank Nedbank may become the second financial institution after the First National Bank to close the crypto bank accounts, local media reports. Last year in Nov. FNB said it would close accounts for crypto exchanges this year, citing the regulatory risks presented by the digital currencies.

Local crypto exchanges however, say they have not been informed of any such development. Meanwhile, the bank says, “Nedbank is in the process of assessing its position in respect of virtual currency dealers/traders.”

The bank is currently assessing its position regarding cryptocurrencies and the word around the industry is they may not be onboarding crypto-related business in the future.

Crypto exchange AltCoinTrader CEO Richard De Sousa says, “There may also be international pressure contributing to the closure of accounts as banks may want to slow down the adoption so they can get on board.”

When FNB closed down accounts last year, reports emerged at that time that FNB had been pressured by JPMorgan, its “correspondent bank,” to do that.

Industry people say banks don’t have a good understanding of crypto and it’s still a very new industry. They expect FNB to reverse its decision in the foreseeable future and that in the next few years, “all banks will offer crypto-currencies to their customers, without exception.”

- Advertisement -
- Advertisement -

Latest News

Wyoming Amends Insurance Code to Allow Insurance Companies to Invest in Bitcoin & other Cryptos

In the first provision of its kind, Wyoming is allowing the domestic insurers to invest...
- Advertisement -Earn Free Bitcoin

Flyp.me Instant Crypto Exchange Now Supports REN Token Trading

Decentralized finance is leading the way of the cryptocurrency industry, with the REN Protocol at the front. REN Protocol is...

BLOCKCHAIN OVERCOMES POSSIBILITY OF FRAUD, LACK OF TRANSPARENCY AND TRUST IN THE GAMBLING INDUSTRY

DATE: 07/08/2020 In a recent study carried out by the UK Gambling Commission reveals that the gambling industry has...

The Kuailian Ecosystem, Bringing Blockchain Technology To The World

10 years have passed since the birth of Bitcoin and the first use of Blockchain, a technology that has not stopped evolving,...

Its’ Finally Here A 100% Local Non-Custodial P2P Cryptocurrency Marketplace.

Finfreeotc is soon launching a one of a kind peer to peer cryptocurrency market place. Their marketplace is 100% non-custodial,...