Ukraine Says Crypto Market Does not Need Government Intervention

Ukraine Says Crypto Market Does not Need Any Gov’t Intervention

Ukraine’s regulatory ministries have concluded that the crypto market does not need government intervention as it can be regulated by the cryptocurrency protocol and enforced consensus rules.

Ukrainian officials consider that blockchain technology is ‘self-regulating’ due to their open-source protocols. Thus, they strongly believe that the crypto market does not need government intervention.

Instead, the officials seek to develop policies for digitization, e-governance and information society development.

Ukraine’s regulatory policy aims to encourage participation in the development of digital assets and adoption of blockchain technology.

New taxation bill

Cryptolydian earlier reported that Ukraine plans to introduce a new taxation bill to include crypto currency gains. Analysts are concerned that the year 2020 will see crypto hubs focusing on crypto-taxation rather than regulation, which will only increase the already immense obstacles facing the sector.

On the other hand, with the rapid spread of blockchain technology in all fields, the need for regulation is an ever-increasing necessity. However, the current regulations may present too much of a constraint that may hinder growth for the new sector.

5ALMD brings transparency to crypto space

The EU 5th Anti-Money Laundering Directive (5ALMD) came into effect as of 10 January 10. The new law, which was first introduced on July 9, 2018, is considered as an effort to bring increased transparency to financial transactions for pushing back against money laundering and terrorist financing across Europe.

Accordingly, the 5ALMD will give European financial regulators increased access to information via centralized bank account registers. According to a 5ALMD fact sheet, it will also tackle terrorist financing risks linked to anonymous use of virtual currencies.

However, crypto companies in the EU are struggling to meet the guidelines set by the new law. They have t o register with local authorities and obtain information about the source of funds from their users. In addition, extensive practices like know-your-customer (KYC) and anti-money laundering (AML) encourage some firms to shut down their operations in the EU and move overseas.

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Rabea Maguid 551 Articles
Rabea Maguid is a journalist completely obsessed with crypto industry. He holds B.A. from Al-Azhar University, and has a background in journalism and economics. Rabea Maguid likes to think about the future in a positive way, and sees blockchain as a potential driver of deep societal change.