Ukraine Plans to trace Suspicious Crypto Transactions Above $1,200

Ukraine Plans to trace Suspicious Crypto Transactions Above $1,200

  • By Admin
  • February 2, 2020

Makarova discussed crypto in an interview with Ukrainian news outlet MC Today, commenting on a law signed last month by the country’s president, Volodymir Zelensky, which strengthens Ukraine's anti-money laundering practices in accordance with the newest Financial Action Task Force recommendations around cryptocurrency transactions.

For the primary time, Ukrainian anti-money laundering law includes crypto as an asset to be monitored, among others. the edge for triggering the scrutiny process is 30,000 Urkainian hryvnia (UAH), or US$1,200. 

“If exchanges, exchangers, banks or other companies make payments in cryptocurrencies worth quite UAH 30,000 in equivalent, they need to verify such transaction and collect detailed customer information,” Makarova said within the interview. “The customer must provide comprehensive information about the origin and destination of their virtual assets.”

If any such operation seems suspicious to the payment service provider, the firm is required to report the transaction to the financial watchdog, the State Financial Monitoring Service (SCFM). The agency also has the capacity to dam suspicious transactions and even confiscate cryptocurrencies originating from illicit transactions, Makarova said.

“SCFM has access to an analytical product that permits investigations into the origins of crypto-assets and their uses,” Makarova said. “It is impossible to prevent operations now, but it's possible to dam crypto wallets and take away illegally obtained crypto assets. this will be done by accessing the crypto's private keys as a results of complex investigations.”

Cryptocurrency as an asset class is yet to be defined by the Ukrainian law. Makarova said a working party with participation from several national agencies is predicted to return up with a replacement regulation for virtual assets in Ukraine “over subsequent four months.” A bill suggesting a 5 percent tax on crypto revenue was already introduced to the Ukrainian parliament in November.

There is no official statistics of what proportion crypto is currently circulating in Ukraine, but Makarova believes the quantity is “quite high,” though most concealment within the country remains conducted with cash.

“I think that our criminals and corrupt officials are quite conservative and still keep the funds mostly in cash,” Makarova said. “Therefore, within the legalization of cryptocurrencies, I see opportunities for the event of this industry in our country, not a threat.”