The new Ukrainian law says that “virtual assets” can be used for payments
Verkhovna Rada, the Ukrainian legislature, approved amendments that
introduce legal terms and definitions related to crypto space. The new legislation, which aims to transpose the FATF standards into national legislation, also identifies who should take responsibility for the supervision of cryptocurrencies in the country.
Using Crypto for payments and investments
The draft Law on the prevention of the legalization of the proceeds of crime and the financing of terrorism and the proliferation of weapons of mass destruction was supported by a significant majority in the Rada. The bill was amended to incorporate “virtual assets” that have been described as property and as a digital expression of value that can be exchanged or transferred and used for payment or investment purposes.
Ukrainian legislation against money laundering (AML) introduces the standards for virtual assets adopted this year by the Financial Action Task Force (FATF). Members of the intergovernmental organization recently agreed to monitor and evaluate the implementation of cryptography requirements in different countries, as reported by news.Bitcoin.com in October.
The law also introduces the term “service provider related to the transfer, exchange and storage of virtual assets,” reveals the forklog encryption information medium in an article. An interesting detail is that not only corporate entities but also individuals may offer such services under the new regulations.
All cryptographic operations will be subject to different levels of financial monitoring depending on the amount and destination of each transaction. The Ministry of Digital Transformation, which has been quite active this year, will have the task of regulating the circulation of virtual assets in Ukraine. It will also carry out supervision to verify compliance with AML regulations in the field of encryption
Kiev will increase supervision as part of EU commitments
The amendments related to cryptocurrencies have been prepared by legislators of the multi-party parliamentary group ‘Blockchain4Ukraine’ with the help of the EU-funded expert and analytical center Office of Best Regulation Delivery (BRDO) and industry members. They were voted on second reading last Friday after the first reading took place on November 1. The adoption of the Law is part of Ukraine’s commitments under its partnership agreement with the EU, Ukrinform said in a report, and will pave the way for a 500 million euro stretch in financial assistance.
Laws in Ukraine are usually passed in three consecutive readings. During the first, the deputies in the Rada accept the draft in principle. Then they have two weeks to propose amendments before the second reading. The law is finally passed in a third reading. However, bills are often adopted during the second reading and sometimes even after the first. The status of the FATF-inspired Bill on the Rada website is currently “adopted” and “prepared for signature.” The president signs the new laws in Ukraine.
During the last vote on December 6, a large majority of more than 240 deputies supported the Law that also incorporates provisions of the Fourth and Fifth EU Anti-Money Laundering Directives. One of the amendments introduced during discussions in the Ukrainian parliament reduces the penalties initially proposed for violations of AML legislation. Another forces Ukrainian financial regulators to align their substantive acts with the new legislation within three months after its entry into force.
The current administration in Kiev, which assumed power after the election of Volodymyr Zelensky as president and the general elections this summer, in which his Servant of the People party won the majority of seats, has been quite positive for the community Cryptographic of the country. A fund recently established by the Ukrainian government will distribute $ 18 million in grants among startups from innovative sectors of the economy, including the blockchain industry
When governments considered progressive visualize the potential of blockchain-bitcoin technology, it is possible to obtain advances in the benefits of cryptocurrencies, it is possible that financial economic crises will obtain support in Crypto. New announcements are expected.
Disclaimer: This press release is for informational purposes information does not constitute investment advice or an offer to invest. The views expressed in this article are those of the author and do not necessarily represent the views of infocoin, and should not be attributed to, Infocoin.