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.
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
