№ 3/2020

Fìnansi Ukr. 2020 (3): 112–126https://doi.org/10.33763/finukr2020.03.112

MARKET OF FINANCIAL SERVICES

DMYTRENKO Tetiana ¹

¹Organization for Security and Co-operation in Europe
OrcID ID : https://orcid.org/0000-0002-2632-2986

Features of regulating virtual assets operations for AML/CFT purposes

The article deals with the peculiarities of implementing the updated Recommendations of the Anti-Money Laundering Group (FATF) to enforce the provisions of international standards for the regulation of virtual assets transactions and the activities of virtual asset service providers. The purpose of this article is to investigate the classification of virtual assets market instruments and its participants for the further development of this market activity at the legislative level. In addition to drafting a basic national law on the virtual assets market in Ukraine, it is urgently needed to develop regulatory regulations on the interaction of the virtual assets market with the financial market sectors, namely, primarily with the banking sector and the stock market of Ukraine. It is the regulation of exchange transactions with virtual assets and fiat money that will create a system of monitoring these transactions for the legalization of funds obtained through crime, fraud, manipulation on organized trading platforms, in the settlement of transactions for illegal goods. A particular challenge to regulate this area is to conduct due diligence on the participants of the transaction in accordance with international standards of compliance. The author provides recommendations on the use of software to analyze and determine the risk of transactions in compliance with AML requirements policies and procedures, criteria for assessing the risk of cryptocurrency customers, banking institutions, professional participants of the stock market and other sectors of the economy, the peculiarities of interaction between the supervisory authorities of participants in these markets. At the same time, the author emphasizes the harmonization of the interaction of the supervisory authorities and the implementation of a risk-oriented approach in order to counteract excessive regulation for the development of the virtual assets market and innovations in its activities.

Keywords:virtual assets, virtual asset service providers, counteraction to money laundering, risk-oriented approach, fiat currencies, virtual wallet

JEL: G14, G18, F65

Dmytrenko T. . Features of regulating virtual assets operations for AML/CFT purposes / T. Dmytrenko // Фінанси України. - 2020. - № 3. - C. 112-126.

Article original in Ukrainian (pp. 112 - 126)

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