Ukraine Commits to Regulating Cryptocurrencies in Accordance with FATF Requirements

The Department of Virtual Asset Development of Ukraine's Ministry of Digital Transformation has announced the country's commitment to adopting international standards to combat money laundering through cryptocurrencies. Adhering to rules set by the Financial Action Task Force (FATF) will position Ukraine to meet global standards, stated the department's director, Yulia Parkhomenko. Financial monitoring is crucial for counterterrorism and preventing money laundering; otherwise, the country risks being listed in FATF's grey or black category, warns the official.

Currently, Ukrainian legislation does not cover cryptocurrencies, lacking specific regulations for digital assets. As a result, cryptocurrency exchanges in the country operate without oversight. The Ukrainian Parliament is currently reviewing a bill for comprehensive cryptocurrency control. According to officials, the proposed bill's provisions could create the necessary conditions for cryptocurrency business development. If enacted, the law will require cryptocurrency exchanges to register with local regulators, conduct customer verification, and report suspicious transactions to law enforcement.

"Monitoring virtual asset operations is only possible with adequate regulation of the new market. Without supervision of cryptocurrencies, there's a risk that the market won't emerge in the country—exchanges and other virtual asset service providers may avoid registration and continue operating in the shadows," stated Parkhomenko.

Last month, the Organization for Security and Co-operation in Europe (OSCE) conducted a practical course for Ukrainian law enforcement on combating cryptocurrency-related crimes.