Ukraine passed a new law that will combat money laundering and will also handle virtual assets and service providers as per the FATF guidelines. Let’s find out more about the latest cryptocurrency news.
Only yesterday, the Rada, the legislative body of Ukraine passed the new, final version of the law that considers virtual assets to be a store of wealth while also making sure to recognize the potential use in financial crimes such as money laundering, financing of terrorists and fraud. The new law includes some of the new FATF guidelines on how the government aims to regulate and monitor closely the trading of cryptocurrencies. One of the rules mostly focuses on individual crypto transactions worth less than 30,000 hryvnyas from which the government will collect the public key of the sender just so they can monitor closely.
However, once the transactions surpass that amount, the government will apply verification for both the sender and the receiver. The process will also include identity verification as well as the verification of the nature of the business relationship itself. For VASP’s the threshold is standing above the 40,000 hryvnya which is about $1,600 in USD. In this case, VASP’s should provide information to the authorities when traders are registered in a jurisdiction that they don’t comply with the anti-money laundering recommendations or when the traders are family members or foreigners.
As per the previous reports, Konstantin Yarmolenko of Blockchain4Ukraine commented about the Ukrainian law. Also, one of the biggest crypto exchanges Binance is now collaborating with Ukranian authorities to establish cryptocurrency-related legislations. Binance even signed a memorandum of cooperation with the Ministry of Digital Transformation of Ukraine just so they can work together on the legal status of cryptocurrencies.
The CEO and co-founder of Binance, Changpeng Zhao commented that the legalization of cryptocurrencies and the adoption of progressive legislation will play the most important role in bringing positive growth in the economy as well as attract more investments. As a part of the agreement, Binance along with the Ministry will form a working group that will focus on the strategy to implement blockchain as well as to create a new virtual asset class and virtual currencies market in the country.
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