The Blockchain Association of Ukraine (BAU) analyzed the main reasons for restrictions on Ukrainian residents by cryptocurrency platforms. The BAU’s study results shared with ForkLog.
In addition to Bittrex, recently reported that services to users in a number of countries have ceased; Ukrainian users do not have access to exchanges:
- Coinbase;
- Gemini;
- Bitflyer;
- Korbit;
- Mercado Bitcoin;
- Coinfield;
- Bitso.
Residents of Ukraine cannot trade cryptocurrency futures on the Kraken Futures platform, cannot download the BitMEX Mobile app in the Ukrainian App Store, and experience problems accessing CoinList, although the platform has no “blacklist” of countries.
“Our [Ukrainian] closed and often paper-based system hinders the development of the stock market and other financial instruments,” BAU specialists said.
It is precisely the outdated legislative framework that hinders Ukrainians from trading futures on Kraken, the Association noted.
Another reason cryptocurrency platforms refuse to operate in Ukraine is concerns about serving residents of unrecognised jurisdictions.
“To meet the sanctions-list requirements and avoid risking their license, a platform must ensure that the user is not from Crimea,” BAU noted.
According to the assertion by the Ministry of Digital Transformation of Ukraine, the problem of identifying users from Crimea led to Bittrex’s exit from the country.
Cryptocurrency exchanges may fear that Ukraine will not fully implement FATF requirements.
Although the Verkhovna Rada has passed a bill implementing FATF norms, affecting virtual assets, and is preparing a regulatory framework for the crypto market, this is not enough until all bills have come into force and begun to operate, BAU says.
Experts say that updating the legislative framework and legalising the circulation of cryptocurrencies and bringing the entire market out of the shadows to a new level under FATF rules could make Ukraine attractive as a jurisdiction for foreign exchanges.
According to the study by Chainalysis, Ukrainians are among the most active cryptocurrency users in the world.
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