Ukraine to regulate crypto with FATF requirements

Ukraine has announced its plans to regulate cryptocurrencies in accordance with the requirements set by the Financial Action Task Force (FATF) in order to avoid being placed on the organization’s grey list. Yulia Parkhomenko, the Director of the Virtual Assets Department at the Ministry of Digital Transformation of Ukraine, emphasized the importance of financial monitoring in combating terrorism and money laundering. She stated that if Ukraine fails to comply with FATF recommendations, the country and its businesses risk being designated on the FATF’s grey or black list. Currently, Ukrainian law does not cover cryptocurrencies, leading to the absence of regulation for crypto exchanges operating in the country. To address this, the Ukrainian Parliament is considering draft law No. 10225-1, which aims to establish a comprehensive regulatory framework for cryptocurrencies. This legislation would require crypto exchanges to register with the government, conduct customer due diligence, and report suspicious transactions.