The Blockchain Association of Ukraine (BAU) analyzed the main reasons for the restrictions on cryptovoltaic platforms for Ukrainian residents. The results of the study were shared by the BAU with ForkLog.
In addition to Bittrex, which recently reported that it has stopped providing services to users from a number of countries, there are no exchanges available for Ukrainians:
Residents of Ukraine cannot trade futures contracts for crypt currencies on the Kraken Futures platform, cannot download the BitMEX Mobile application from the Ukrainian App Store and have problems accessing the CoinList exchange, although the platform does not have a „blacklist“ of countries.
Among the main reasons for the current situation in the BAU are common features in the regulatory financial field, „which are associated with the Soviet legacy and years of reluctance to bring legislation into the international format of free movement of assets.
„Our [Ukrainian] closed and often paper system hinders the development of the stock market and other instruments of the financial world,“ – said UAB specialists.
It is the outdated legal framework that prevents Ukrainians from trading futures on Kraken, the Association noted.
Another reason why crypt-currency platforms refuse to work in Ukraine is the fear of serving residents of unrecognized jurisdictions.
„In order to meet the requirements of the sanctions list and not to put your license at risk, the platform needs to make sure that the user is not from the Crimea,“ noted the BAU.
According to the Ministry of Digital Transformation of Ukraine, it was the problem of identifying Crypto Code review users from the Crimea that caused Bittrex to leave the country.
Crypt currency exchanges may fear that Ukraine will not fully comply with the requirements of the Financial Action Task Force (FATF).
Despite the fact that the Verkhovna Rada has passed a bill on the implementation of FATF regulations, which also affects virtual assets, and is preparing a legislative framework for the market for cryptocurrency, it is not enough until all the bills „have not entered into force and have not begun to work,“ said the UAB.
According to experts, further updating of the legislative base, as well as legalization of the crypt currency turnover and „bringing the whole market out of the shadows to a new level“ according to FATF rules can make Ukraine attractive for foreign exchanges.
According to Chainalysis research, Ukrainians are the most active users of cryptovoltaic in the world.
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