The Ukrainian government has passed its anti-money laundering law according to the FATF guidelines. This new law would handle virtual assets and virtual asset service providers (VASP). Ukraine’s legislative body, Rada, published the final version of the law on 6 December.
From now on, the Ukrainian state would consider virtual assets to be a store of wealth. On the other side, their negative potential has also been admitted regarding illegal financial activities like terror financing, fraudulent practices, and money laundering.
Eye on Every Party
The government seeks to keep an eye on both the parties engaged in a crypto transaction. For this purpose, it has set a minimum limit of 30,000 hryvnias (approximately $1,300). Any transaction involving an amount less than this threshold would only entail the public key of the sender getting monitored.
However, once the transaction amount exceeds this value, the government would monitor both the sender and the receiver. The process would involve twofold verification— identity verification of the persons or entities involved as well as a verification of the type of business relationship existing between them.
The threshold amount for virtual asset service providers is fixed at 40,000 hryvnias which are about $1,600. VASPs are required to inform the authorities in case the traders are registered with a jurisdiction which does not comply with anti-money laundering guidelines or if the trader is a member of the family or if the traders belong to a foreign country and when a cash transaction of an amount more than the threshold limit takes place.
Recently, Hong Kong also passed a law that revised its existing crypto regulations to check fraudulent activities. In order to fulfill this objective, the digital currency operators were to adhere to KYC requirements.