Ukrainian Government Sees No Reason for Establishing Crypto Regulations

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The Ukrainian Ministry of Digital Transformation published a document on February 7, stating that it will not regulate the crypto mining sectors in the country. Furthermore, the agency emphasized that crypto businesses are not required to ask from other parties for regulations either way.

The ministry assured that state authorities would not take part in regulating crypto mining since the industry’s network members and their protocols are already designed to function as regulatory measures, alongside Blockchain consensus rules.

Furthermore, the ministry also noted that it would contribute to the development and marketing of these technological innovations. They also reassured that the procedures within these sectors would be properly evaluated by providing sandboxes to assess potential risks that can affect the integrity of the industry.

The agency also guaranteed that Ukraine aims to take charge of the interaction between the traditional and crypto financing markets to avoid any conflict or misconduct from private sectors and law enforcement. In addition to this, a draft taxation bill was submitted to the Verkhovna Rada, the country’s parliament, last November 7. It reveals the government’s plan of adopting standard taxation practices that will be applied to cryptocurrency-related income.

However, due to the pressures of external agencies, the government has to appoint the State Financial Monitoring Service (SFMS) of Ukraine as the sole authority in charge of tracking the citizens’ crypto fund sources and any virtual transaction that will exceed USD 1,200. The government will only gather the public key of the sender in a trade for financial monitoring purposes. This development was announced by Finance Minister Oksana Makarova. 

The law that permits this move was approved by the government last December to ensure that Ukraine’s anti-money laundering acts are aligned with the Financial Action Task Force (FATF) guidelines concerning cryptocurrency.

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