NSSMC joined discussion on regulation of virtual assets for political financing

On 16 March, International IDEA hosted an expert dialogue “Regulating the Use of Virtual Assets in Political Financing.” Vita Forsiuk, the NSSMC Legal Advisor, participated in the event.

The participants discussed the impact of virtual assets on political financing and the associated risks to transparency, particularly due to their pseudonymous nature and cross-border character. They paid particular attention to international experience, specifically the practices of Moldova and Romania, as well as to identifying gaps in national regulation.

During the discussion, Vita Forsiuk presented the approaches outlined in a new draft law on regulation of the virtual asset market.

Key instruments include:
– implementation of the “Travel Rule” to identify participants in crypto transactions;
– reporting by virtual asset service providers to tax authorities and implementation of international standards, including the Crypto-Asset Reporting Framework (CARF);
– restricting access to the Ukrainian market for participants with Russian capital or those affiliated with the aggressor state.

These approaches are aimed at increasing the transparency of transactions and reducing the risks of non-transparent or foreign influence on political processes.

Based on the results of the meeting, it is expected that analytical recommendations for enhancing the transparency of political financing ahead of upcoming election cycles are going to be prepared.