Ukrainian lawmakers supported a new amendment to the law that legalizes cryptocurrency payments, considering them as a property.
Lawmakers in Ukraine enacted a new amendment to legislation that allows payments with cryptocurrencies. This at the same time that the country meets strict international standards against money laundering (AML).
The members of the legislative arm of Ukrania (Verkhovna Rada) adopted amendments to the law that incorporates AML into the crypto regulatory framework of the country.
Stresses that, as part of the legislation, cryptocurrencies are now classified as property in Ukraine. That means that virtual currency owners can use their digital holdings as a means of exchange: transactions, payments, investments and legalized transfers.
Also, the law includes a provision for individuals to act as transmitters and custodians of cryptocurrencies. However, there is a restriction: these services must operate in strict compliance with the monitoring standards and financial reports prescribed by the recently adopted bill.
Ukraine and cryptocurrencies
By legalizing crypto payments, Ukraine seems to have taken a significant step to boost local commerce of virtual currencies in the country. Earlier this year, the city of Kiev announced that it was considering allowing payments with bitcoins in its public transport system.
Similarly, by adopting the new regulatory rules for crypto payments, Ukraine also complies with the guidelines introduced by the Intergovernmental Financial Action Task Force (FATF).
The FATF has been interested in ordering member countries to enact more stringent regulatory provisions for several months. Especially it is in the interest of the agency that the anti-money laundering regulations are met.
All crypto operations in Ukraine will now be subject to different levels of financial monitoring depending on the amount and destination of each transaction. He said that 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 crypto sphere.
The amendments related to cryptocurrencies were prepared by legislators of the multi-party parliamentary group ‘Blockchain4Ukraine’ with the help of the expert and analytical center funded by the Better Regulation Delivery Office (BRDO) of the European Unio