Litecoin is one of the first open-source altcoins based on the original Bitcoin code. It was initially a strong competitor to the first cryptocurrency. However, as the cryptocurrency market expanded, Litecoin’s popularity gradually declined.
In Ukraine, transactions with virtual assets are now subject to financial monitoring
According to the Ministry of Finance of Ukraine, transactions with cryptocurrency are subject to verification by the anti-money laundering service.
Companies that provide services related to cryptocurrencies will be checked.
The system will work as follows: the contractor checks all transactions for an amount equivalent to UAH 30 thousand or more. The bank, exchange or exchanger will have to collect all the information about the operation and the client. On the part of the user, information is provided about the origin of the funds, as well as their purpose. All suspicious transactions with virtual currency should be transferred to the State Financial Monitoring Service.
The purpose of such a check is to make sure that the money was received legally.
Financial monitoring uses an analytics system that tracks the origin of crypto assets and the purpose of their use. The organization reports that there are already many successful solutions to problematic transactions.
Finance Minister Oksana Markarova said that the client will not need to explain the origin of funds every time. It is enough to confirm the information about the source of income and the field of activity once. This information will remain in the database of the financial institution and no more checks will be required until the client commits an activity that is not typical for him. Most likely, banks will be reinsured and freeze suspicious transactions. According to the new rules, this is possible without a court decision.
According to the minister, the updated law means the beginning of the legalization of cryptocurrency in Ukraine in accordance with the recommendations of the international organization against money laundering (FATF). For this purpose, a working group was created to develop a law on the regulation of cryptocurrency in Ukraine. The implementation of the FATF recommendations and the EU Terrorist Financing Directives will accelerate the process of integration into the European Union.
Earlier we talked about cryptocurrency as a way to avoid taxes.
We also wrote that the Ukrainian authorities are investing in blockchain startups.
