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Ukraine to fall out of international financial system without cryptocurrency regulations – expert

"Financial monitoring of cryptocurrencies is mandatory but banks have not been coping."

Ukraine to fall out of international financial system without cryptocurrency regulations – expert
Igor Samokhodskyy
Photo: Max Trebukhov

Ukraine has to introduce the primary financial monitoring of cryptocurrency transactions or risk ceasing to be part of the international financial system, the head of IT and telecom at BRDO, Igor Samokhodskyy, has said at a roundtable "Why does Ukraine need to use blockchain and legalise cryptocurrency?" hosted by Gorshenin Institute.

"Today, financial monitoring of cryptocurrencies is mandatory but banks have not been coping and in fact it does not work. And Ukraine, like the international community, is obliged to make the players of the cryptocurrency market the subjects of primary financial monitoring. This means that if you transfer a million using cryptocurrency, or receive income, you must show where you got this million. This rule has been here, only one aspect is changing: who will carry out primary financial monitoring. As a country, we are obliged to introduce this rule for exchanges, for example, to use it. There is nothing to discuss here because otherwise we will simply not be part of the international financial system," he said.

According to Samokhodskyy, it is also important to start regulating the sector because virtual assets are quite new and Ukraine has a chance to participate in the international competition of jurisdictions. 

“Our jurisdiction is not competitive in the global market. We do not see the queue of banks or financial companies that would like to work in Ukraine. But the sectorr of virtual assets is new. The competition of jurisdictions in the world in this area is at its initial stage. And if Ukraine gives this sector some legal field, we will become one of the official players," the expert noted.

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