№ 9/2020

Fìnansi Ukr. 2020 (9): 65–79https://doi.org/10.33763/finukr2020.09.065

ECONOMIC SECURITY: THEORY, PRACTICE, MANAGEMENT

DMYTRENKO Tetiana ¹, LYUBICH Oleksandr ²

¹Organization for Security and Co-operation in Europe
OrcID ID : https://orcid.org/0000-0002-2632-2986
²SESE “Theн Academy of Financial Management”
OrcID ID : https://orcid.org/0000-0002-9339-4242

Implementation of international standards of virtual assets market regulation in Ukraine

The article deals with peculiarities of implementing of the updated Recommendations of the Financial Action Task Force (FATF), the Fifth Directive of Council of Europe (5AMLD) in the legislation of Ukraine and the activities of the National Anti-Money Laundering and Terrorist Financing System (AML/CFT) and effective practices of dealing with them. The article analyzes international and European guidelines on the circulation of virtual assets and the activities of service providers with virtual assets, a draft Law of Ukraine “On Virtual Assets” and amendments to the Tax Code of Ukraine. The article also considers the current challenges of development and operation of the global crypto market and strategic planning of international cooperation in addressing these issues, as well as the action plan at the national level. In addition, the article discusses the next steps to regulate the so-called private “tokens” issued on existing platforms in the fundraising order and the so-called “stable coins” and digital currencies of the central bank (CBDC). These trends have forced various regulators, standard-setting bodies, and legal scholars to shift their focus and expand their vocabulary from the term “cryptocurrency” to the broader concept of “cryptocurrencies”. In particular, the article considers the risks of delaying in Ukraine the implementation of international AML standards, amendments to national tax legislation, interaction with the banking sector. Particular attention is paid to the measures of the Ministry of Digital Transformation of Ukraine to reduce threats to the use of virtual assets in the shadow economy, the development of fraud in cyberspace, cybercrime to develop a transparent civilized crypto market and digital technologies in general.

Keywords:virtual assets, virtual asset service provider, counteraction to money laundering, risk-oriented approach, cryptocurrency exchange, crypto market, crypto assets, crypto currencies

JEL: G14, G18, F65

Dmytrenko T. . Implementation of international standards of virtual assets market regulation in Ukraine / T. Dmytrenko, O. Lyubich // Фінанси України. - 2020. - № 9. - C. 65-79.

Article original in Ukrainian (pp. 65 - 79)

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