Read

<div class="cryptonews">
 <p class="is-style-lead">New research supported by Ukraine’s Ministry of Digital Transformation says the lack of regulation forces web3 <a rel="noopener noreferrer nofollow" title="startups" href="https://thebittimes.com/tag/startups.html">startups</a> to incorporate in foreign jurisdictions.</p>
 <p>A new research <a rel="noopener noreferrer nofollow" title="report" href="https://thebittimes.com/tag/report.html">report</a> conducted by the Ukrainian Web3 Institute, titled “Web3 for Ukraine: Talk to Founders,” has outlined the key issues that have hindered the adoption of web3 technologies in war-torn Ukraine. According to the document, the lack of clear guidelines on how to interact with government institutions has made it difficult for web3 <a rel="noopener noreferrer nofollow" title="startups" href="https://thebittimes.com/tag/startups.html">startups</a> to collaborate with government agencies.</p>
 <blockquote class="wp-block-quote">
  <p>“Projects are ready to cooperate with government institutions and even provide them with their products free of charge, but the employees of the institutions themselves refuse to do so due to the lack of clear official rules for working with web3 technologies.”</p>
  <p>Ukrainian Web3 Institute</p>
 </blockquote>
 <div class="cn-block-related-link">
  <svg class="cn-block-related-link__icon icon" aria-hidden="true"><use xlink:href="#"></use>
  </svg> <span class="cn-block-related-link__prefix"> You might also like: </span> Ukraine seizes $1.5m in crypto from former official
 </div>
 <p>The Ukrainian Web3 Institute has called on the Ukrainian government to take immediate action to address the regulatory challenges facing the web3 sector, saying the lack of a clear regulatory framework is “one of the reasons for the incorporation of web3 companies abroad.” As noted by the organization, there are “no clear legal regulations” to register crypto-related <a rel="noopener noreferrer nofollow" title="startups" href="https://thebittimes.com/tag/startups.html">startups</a> in Ukraine so far.</p>
 <blockquote class="wp-block-quote">
  <p>“In Ukraine, investment funds do not have mechanisms to legally purchase cryptocurrencies for fiat. There are no clear rules for the official work of Ukrainian web3 companies with foreign counterparties.”</p>
  <p>Ukrainian Web3 Institute</p>
 </blockquote>
 <p>To prepare the research, Ukrainian Web3 Institute interviewed 50 Ukrainian web3 founders from 19 sectors of the web3 economy with the support of the Ministry of Digital Transformation in Ukraine.</p>
 <p>While the country is yet to develop clear rules for crypto businesses, Ukraine has apparently already started preparing to implement FATF’s requirements on crypto in a bid to avoid inclusion on the grey list. As per Yulia Parkhomenko, director of the virtual assets department at the Ministry of Digital Transformation of Ukraine, the country is at risk of being placed on FATF’s grey list should it fail to comply with international rules.</p>
 <p>As crypto.news earlier <a rel="noopener noreferrer nofollow" title="report" href="https://thebittimes.com/tag/report.html">report</a>ed, the regulatory norms defined in the draft law No. 10225-1 are expected to create all the necessary conditions for the operation of crypto businesses in Ukraine. The draft law, which is currently under consideration by the Ukrainian Parliament (Verkhovna Rada), would require crypto exchanges to register with the government, conduct customer due diligence, and <a rel="noopener noreferrer nofollow" title="report" href="https://thebittimes.com/tag/report.html">report</a> suspicious transactions.</p>
 <div class="cn-block-related-link">
  <svg class="cn-block-related-link__icon icon" aria-hidden="true"><use xlink:href="#"></use>
  </svg> <span class="cn-block-related-link__prefix"> Read more: </span> Ukraine lost nearly $53b due to lack of crypto regulation
 </div> <span class="google-news-banner__label">Follow Us on Google News</span>
</div>
<p>Source: <a rel="noopener noreferrer nofollow" target="_blank" href="https://thebittimes.com/regulatory-void-shackles-web3-startups-in-ukraine-report-says-tbt73646.html">https://thebittimes.com/regulatory-void-shackles-web3-startups-in-ukraine-report-says-tbt73646.html</a></p>

Regulatory void shackles web3 startups in Ukraine, report says

TheBitTimes

Other articles published on Dec 14, 2023

North Korea’s Lazarus behind $300m in 2023 crypto losses

BRICS: Argentina’s Peso faces sharp devaluation under new president Javier Milei

Binance Faces Potential Exit In The Philippines, Know The Timeline

Gold Climbs 1.5% As US Dollar Weakens & Treasury Yields Fall

Ledger Suffers Supply Chain Attack!

Cathie Wood’s Ark Invest Cashes In On Coinbase As Shares Hit 20-Month High

Join our free newsletter for daily crypto updates!