The parliament of Ukraine or Verkhovna Rada, as it is known in Ukrainian approved amendments that will affect the cryptocurrencies.
The purpose of this law is to harmonize FATF standards with Ukrainian laws. The majority of the Ukrainian lawmakers agreed to support this law. The draft law on the prevention of the legalization of proceeds from crime and the financing of terrorism and weapons of mass destruction proliferation. The title of the law is quite long.
The bill was modified to incorporate “virtual assets”. Moreover, according to this digital bill, the currency has a value and it is possible to trade or transfer crypto-assets for payment.
Ukraine’s anti-money laundering (AML) legislation introduced the standards for virtual assets. The Financial Action Task Force (FATF) adopted the standards in 2019. Moreover, several months ago, the members of the inter-governmental organization agreed to monitor the implementation of the crypto requirements.
In Ukraine, the Ministry of Digital Transformation should monitor the situation. This ministry will have to regulate the circulation of virtual assets in Ukraine. Moreover, all crypto operations will be subject to different levels of financial monitoring. This will depend on the amount and destination of each transaction.
Cryptocurrencies and EU integration
Ukraine wants to join the European Union. As part of the association agreement with the EU, it has to solve issues connected with the crypto market.
The amendment regarding the cryptocurrencies belongs to lawmakers from the multi-partisan parliamentary group called “Blockchain4Ukraine”.
Moreover, the adoption of the law is part of the agreement with the EU. By approving this draft law, Ukraine will receive financial assistance.
It is important to mention that typically it takes three consecutive readings to adopt a new law. During the first one, Ukrainian lawmakers accept the draft in principle. They have two weeks to propose amendments before the second hearing. The third hearing is the last step.
However, it is possible to adopt the law during the first or second hearings. Currently, based on the information taken from parliament’s website, this parliament already passed this law. The last part depends on Ukraine’s president, as he has to sign the law.