Ukrainian government will be able to "block crypto wallets" in lodge to seize illegally obtained avails, a notice on the country's Ministry of Finance says.

Oksana Markarova, Ukraine's Finance Minister, reportedly said that the Land Financial Monitoring Service of Ukraine (SFMS) will be the responsible authority for tracking the sources of origin of the funds on citizens' crypto wallets.

Authorities use an analytical product scanning for the crypto funds' origins and uses

As part of the regulatory policy, the SFMS will be able to not only find out the origin of crypto, but also notice how those funds have been spent, Markarova said in a Jan. 23 report placed on the official website of Ukraine's Finance Ministry.

Markarova, who has been serving equally Ukraine's Finance Minister since late 2022, initially told the news in an interview with local business organisation publication MC.today. The text of the report on Ukraine'south Finance Ministry website is basically a copy of the original report on MC.today.

Specifically, the SCFM claims to have access to an "belittling product" that purportedly allows investigators to look at the origins of crypto avails as well as their uses. Co-ordinate to Markarova, at that place have been a number of "successful cases" of investigations via the service.

Blocking crypto wallets is possible as a "result of complex investigations"

Markarova elaborated that halting crypto transactions is incommunicable, while blocking wallets is possible through private keys:

"Information technology is incommunicable to stop operations now, but information technology is possible to block crypto wallets and remove illegally obtained crypto assets. This can exist done past gaining admission to the crypto's private keys as a result of circuitous investigations."

Cointelegraph asked the SCFM about their capabilities in blocking crypto wallets of Ukrainians but did not receive an immediate response. This story will be updated should they respond.

Activity is part of the AML regulation canonical by the Ukrainian authorities in belatedly 2022

Co-ordinate to the statement, the new responsibleness of the SCFM volition be part of a new crypto-related law that was approved by the Ukranian authorities in Dec 2022.

On December. 6, the Verkhovna Rada, the parliament of Ukraine, published a terminal version of a money laundering law that will handle virtual assets and virtual asset service providers per guidelines of the Financial Action Task Force (FATF). The document says that cryptocurrency transactions are among operations that have to exist monitored by relevant regime.

As office of the new law, all crypto transactions up to 30,000 Ukrainian hryvnia ($1,300), will reportedly have to be accompanied with Know Your Customer identification and information on the nature of the business organisation relationship between the payer and payee. Additionally, the new law will reportedly come into force on April 24, 2022.