The State Financial Monitoring Service of Ukraine announced the official position of the ministry regarding the mining, virtual currencies, payment products and services based on them (hereinafter referred to as “SPVV”), as well as identification of participants in cryptocurrency transactions. In particular, the representatives of the agency said that they are n solidarity with the Financial Action Task Force on Money Laundering (FATF).
Thus, virtual currency, as defined by the FATF, is a means of expressing value that can be traded in digital form and that functions as a means of exchange, a monetary unit or a means of storing value, but does not have the status of a legal tender in one jurisdiction. Virtual currency is not issued and is not provided by one jurisdiction and performs the above functions only based on the agreement reached within the virtual currency user community (peer-to-peer network). In turn, electronic money is a digital way of expressing a fiat currency.
The position of the FATF and, accordingly, the State Financial Monitoring Committee on Identification of Participants of the HTAP is that the main regulatory attention in the process of identifying and taking due diligence measures to the client, as well as the risk-based monitoring of the client’s financial operations, should be concentrated in the centers that provide access for holders of convertible virtual currencies to a regulated financial system.
These centers include cryptocurrency exchangers and exchanges, crypto-currency purse providers and any other entities that are intermediaries between the regulated financial system and the crypto currency.