The law will consider digital assets as a “wealth reserve”

According to press releases from the Ukrainian media, it was recently approved by the government a new law that will fight against money laundering, which is used by digital funds, as well as manage suppliers and companies engaged in the business of digital assets. This law was supported according to the report and recommendations issued by the International Financial Action Task Force (FATF).

The last revision of the law that was approved on December 6th by the Legislative Body of Ukraine (the Rada) defines digital assets as a good of value that should be considered as “wealth reserve”, thus giving importance to recognize that they could be subject to criminal acts, as a form of money laundering, active in fraud and extortion and as a method of financing terrorism.

As the law is known, it specifies the methods that the government will use to regulate and control the use of cryptocurrencies. Among the most popular of the guidelines that the law indicates is the supervision of all transactions made with cryptocurrencies with a value of less than 30,000 grivnas, the equivalent of (US $ 1,300). In this way, the regulatory body will have the public key of the issuer to be checked by the government.

Then, if the amount of the transaction made with cryptocurrencies exceeds the minimum amount indicated, the regulatory entity will have, as expressed by law, the power to verify not only the sender but also the recipient of the money. Thus, demanding the identity certification of both parties involved in the operation. Verification of the type of commercial relationship that both parties have will also be conducted.

Konstantin Yarmolenko, who is a Ukrainian specialist in the sector and a member of Blockchain4Ukraine, explained to a local news web portal that Ukrainian legislation states that there is usually a minimum cap, but when it is above the price level (about 1,600 American dollars).

The entity in charge demands that the necessary data of the operations be delivered to them, and especially when these merchants are outside the jurisdiction that is not endorsed by the FATF recommendations against money laundering, or when the merchants are a family association, when transactions occur using cash, among other means of payment or when those involved in the operation are foreigners.

Binance Collaborates with the Ukraine Government to Create a Legal Environment for Cryptocurrencies

In recent news, it was revealed that the cryptocurrency giant Binance signed a memorandum of understanding (MoU) with the Ukrainian government to jointly create a legal environment regarding cryptocurrencies that suits the country.

Working directly with the Ministry of Digital Transformation of Ukraine, Binance is developing a plan that seeks to establish progressively a set of laws that can help the economic growth of Ukraine around the crypto industry, as well as shaping its legal structure to attract new investors.

According to the agreement between the company and the Ukrainian government, they will be dedicated to assembling a working group that will be fully involved in the plan to use the blockchain platform to establish a whole network which allows the development of new digital assets, as well as creating a whole crypto market in the country.

By María Rodríguez


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