Ukraine Ministry of Digital Transformation has recently published a crypto draft law which finally allows crypto companies to open bank accounts. The law was in response to the June 2020 deadline given by the Financial Action Task Force (FATF).
The new draft bill “On Virtual Assets”, published by the ministry, aims to determine the legal status of cryptocurrencies, laws on their issuance and circulation in the country. The current version of the bill is however not finalized and it’s still open for discussion by the crypto community until June 5.
Speaking with Cointelegraph, Michael Chobanian, President of the Bitcoin Association Ukraine, an organization that co-authored the new bill, said crypto exchanges are currently unable to open a bank account in Ukraine. Therefore, the proposed draft bill is designed to finally bring legal presence to crypto companies in Ukraine. It will also enable virtual assets service providers to open accounts in banking and other financial institutions.
The new draft law comes in response to a request by the FATF, which announced that it would seek to adopt AML guidelines for crypto by June 2020. The drafted bill requires local companies to register with the ministry in order to operate a fiat-to-crypto business in Ukraine legally. Such companies will have to ensure Anti-Money Laundering (AML) and Know Your Customer (KYC) compliance on their platforms.
Local authorities are reportedly working on 3 separate bills, one of which is devoted to crypto taxation. The Ministry of Digital Transformation of Ukraine partnered with Binance, the world’s leading crypto exchange, in late 2019, to collaborate on local crypto legislation. In his conversation with Cointelegraph, Chobanian noted that, though Binance has not participated in authoring this new bill, it is expected to give its feedback on it.