Ukraine cracks down on illicit cryptocurrency exchange platforms

on Aug 16, 2021
  • The Security Service of Ukraine (SBU) has banned several illegal crypto platforms in the country.
  • The platforms are operating without any license from regulators.
  • SBU also said the platforms provide transaction anonymity to criminals and money launders.

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The Security Service of Ukraine (SBU) has come hard on several cryptocurrency platforms and digital asset exchangers operating illegally in the country.

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The regulator has also stopped the operation of some digital exchangers allegedly involved in money laundering.

The SBU said some of the platforms are operating in secret without any form of license. Most of the networks charge between 5% and 10% for transactions on digital assets. Translating this interest, means they are making a monthly turnover of more than $1 million from their clandestine crypto services.

The exchanges provide transaction anonymity

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According to the regulator, the platforms had about 1,000 clients in total. Some of the clients were organizers of mass protests, online fraudsters, money-launderers, and criminals.

Additionally, some of the clients used funds from the venues to finance aggression acts during the Independence Day of Ukraine.

SBU stated that the exchanges offered transaction anonymity, and many of them only started operating this year. As a result of the guarantee of anonymity, many of the clients choose them to carry out their illegal activities.

During the investigation, the local police raided the exchanges’ offices and seized documents, mobile phones, computers, as well as cash in foreign currency. The authorities have filed the case to cut, but it’s not clear what type of punishment awaits them.

But the prosecution is expected to present all the evidence recovered from the offices and other supporting documents. 

SBU is determined to stop criminals in the industry

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The SBU has intensified efforts to clamp down on illegal digital exchange operators in the country. The Main Directorate of the watchdog has already prosecuted three organizations accused of fostering fraudulent schemes.

The market for digital assets and cryptocurrencies has exploded over the past year. However, it has also attracted people with illicit intentions to the industry. Apart from the Ukrainian regulator, other regulatory bodies have also intensified efforts to crack down on offenders and fraudsters in the digital assets market.