Ukraine’s State Financial Monitoring Service explains how it tracks suspicious cryptocurrency transactions

The State Financial Monitoring Service of Ukraine tracks the turnover of virtual assets using specialized software and other sources, the head of the service, Igor Cherkassky, said in an interview with ‘Obozrevatel’.

According to him, the agency also receives information about suspicious deals with digital currencies that may be linked to money laundering or the financing of terrorism, from law enforcement, foreign units of financial intelligence, as well as providers of cryptocurrency-related services, including exchanges and exchangers.

The latter are subject to primary financial monitoring and are required to report their suspicions, Cherkassky added.

“To date we have handed over nine materials to law enforcement authorities with suspicions of money laundering using virtual assets. And this is only the beginning,” he said.

The head of the State Financial Monitoring Service also stated that Ukraine has become “one of the world’s pioneers in extending anti-money-laundering legislation to activities related to the turnover of virtual assets”.

“But without a framework-specific law, such regulation cannot be fully effective. While everyone should understand that the tools for financial intelligence work are, without a doubt, available,” he added.

Earlier last year, it was reported that the State Financial Monitoring Service would be tasked with tracing the origins of cryptocurrency for Ukrainian citizens.

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