Things may be about to get a little easier for crypto firms in the Ukraine, after the publication of a new draft bill clarifying the legal status of virtual assets. 

After four years of contemplation, last week the Ministry of Digital Transformation of Ukraine, published the new draft bill “On Virtual Assets”, which provides clarification on the legal status of cryptocurrencies, and rules regarding their circulation and issuance. 

Critically, if passed, the bill should allow Ukrainian crypto companies to open local bank accounts – something cryptocurrency exchanges in the country are still unable to do.

However, despite the obvious benefits to the industry, some serious concerns have been raised. One in particular is quite disturbing – the possibility that the law would render all crypto wallets in the country illegal unless they are registered with the Ministry.  

It seems the Ministry drafted the bill in response to last year’s announcement by the Financial Action Task Force (FATF) that it would be adopting AML rules for cryptocurrencies by June 2020. The Ministry has invited feedback from the crypto community, with the bill open for discussion until 5 June 2020. 

As we reported in January, the Ukrainian authorities have already started monitoring all cryptocurrency transactions exceeding 30,000 Ukrainian hryvnia (UAH) – approximately €1,100. 

AYO.NEWS says:

As digital assets mature into a fundamental part of the global economy, we are witnessing the irreconcilable nature of true privacy and anti-money laundering regulations. No matter what proponents of regulation say, by definition you simply can’t have true privacy and effective AML controls. 

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