OSCE workshop upskills Ukrainian regulators on best practices for virtual assets supervision and anti-money laundering tactics

From June 18 to 20, the Office of the Co-ordinator of OSCE Economic and Environmental Activities organized a workshop titled "Navigating the Virtual Asset Landscape" in Warsaw, Poland. The workshop, which was hosted by the Ministry of Finance of Poland, targeted Ukrainian supervisory agencies and regulators and their efforts to implement Financial Action Task Force (FATF) Recommendations 15 and 16. These recommendations cover virtual assets within anti-money laundering and counter-terrorist financing (AML/CFT). Key topics at the workshop included the supervision of Virtual Asset Service Providers (VASPs) and the adoption of best practices in the area of crypto-assets.

The three-day event gathered Ukrainian authorities from the National Bank of Ukraine, National Securities and Stock Market Commission, State Financial Monitoring Service and Ministry of Digital Transformation, who are responsible for overseeing and implementing the national Anti-Money Laundering (AML) regulatory framework. The workshop offered a platform for discussions on how supervisory authorities can effectively oversee VASPs and mitigate the risks of money laundering and other financial crimes.

During the interactive sessions, participants from Ukraine examined practical VASP regulation cases, highlighting key challenges and effective supervisory approaches. They analyzed crypto-specific risks, developed tools for risk assessments, reviewed the challenges, discussed decentralized finance (DeFi) business models and addressed best practices for AML and Know Your Customer (KYC) procedures. Emphasis was placed on adopting best practices from the EU's Markets in Crypto-Assets (MiCA) regulation and FATF Recommendations 15 and 16. Several experts also provided insights into MiCA's implications on VASP supervision, aiding Ukrainian regulators in understanding the evolving European legislative framework.

"An appropriate AML supervisory framework for virtual assets is essential to prevent their misuse for illicit activities," said Vera Strobachova-Budway, Acting Senior Economic Officer at the OSCE. "This workshop will empower Ukraine to effectively address money laundering risks and promote a secure and compliant crypto market by adopting best practices from MiCA and FATF Recommendations 15 and 16."

This initiative demonstrates the OSCE's ongoing commitment to supporting regional co-operation on anti-money laundering, particularly in the area of crypto-assets. By facilitating knowledge sharing and capacity building, the workshop equipped participants with the necessary tools and expertise to strengthen VASP supervision and uphold financial integrity in Ukraine.

The workshop is part of an OSCE extra-budgetary project on "Innovative policy solutions to mitigate money-laundering risks of virtual assets", funded by Germany, Italy, Poland, Romania, the United Kingdom, and the United States. The project supports OSCE participating States in building national capacities to mitigate criminal risks related to virtual assets.