Ukrainian state security puts an end to illegal cryptocurrency exchanges

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Ukraine’s Security Service (SBU) has shut down several crypto exchanges believed to be involved in illegal financial transactions since early 2021.

According to an SBU statement on Wednesday, the underground cryptocurrency exchange network was based in the country’s capital, Kiev, and collectively processed a monthly turnover of $ 1.1 million in funds linked to criminal activity. .

The SBU’s announcement claimed that illegal crypto exchanges provide anonymous transaction services, making it a money laundering risk. Indeed, the Ukrainian state security service said some people funneled funds through these platforms to organize protests across the country.

According to the SBU, these illegal funds came from electronic wallets linked to banned Russian payment processors such as Qiwi, WebMoney and Yandex.

Ukraine’s state security service also reportedly recovered computers with evidence of suspected illegal activity and forged incorporation documents for companies during raids on crypto exchange platforms.

Related: New Bill In Ukraine To Allow Cryptocurrency Payments, Official Says

News of the shutdown follows a similar raid on a warehouse suspected of diverting electricity to mine cryptocurrency using PlayStation 4 consoles. However, an investigation by Delo, a local trade publication, revealed that the facility was used to generate in-game currency, not to cultivate crypto.

Meanwhile, as previously reported by Cointelegraph, the Ukrainian parliament is considering a new bill to legalize crypto payments in the country. However, legislative action will not change the status quo of Bitcoin (BTC) and cryptocurrencies that are not classified as legal tender in Ukraine.

The country’s central bank is also working on a national digital currency project. The National Bank of Ukraine received official authorization to issue a central bank digital currency (CBDC) in July. The Ministry of Digital Transformation has partnered with the Stellar Development Foundation on a common strategy for digital assets and CBDCs.

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