Ukraine’s Security Service Closes Illegal Cryptocurrency Exchanges


The Ukrainian authorities have reportedly reported that cryptocurrency exchanges are involved in illegal financial activities, including money laundering.

The Ukrainian Security Service, known as SBU, has shut down various crypto exchanges that have been reported to have been doing illegal business since early 2021.

The SBU referred to the cryptocurrency exchange in a statement on Wednesday as the network of “clandestines” – known for their illegal transactions. They added that the secret cryptocurrency exchange network was located in Kiev, the district’s capital. Together they processed $ 1.1 million in revenue per month in connection with criminal activities.

Related reading | Coinbase removes USD-Coin (USDC) ”with dollar-based declaration

Many people today want to remain anonymous online and there are many effective ways to achieve this. Privacy experts and organizations believe that this is a fundamental human right. But financial watchdogs around the world still view anonymous transfers as gray payments.

The security service of Ukraine accused the illegal crypto exchanges in a message of offering anonymously marked transaction services.

SBU added that this type of illegal service has been classified as a money laundering risk. They also revealed that some people were channeling money through these crypto exchanges across the country to arrange a protest.

The source of illegal cryptocurrency funds

SBU announced that the illegal funds came from electronic purses (e-wallets) linked to the payment process prohibited in Russia. There are many, including Yandex, Qiwi, and WebMoney.

The Ukraine Security Service reportedly recovered some computers with clues about the alleged illegal activities. In addition, they allegedly forged founding documents for the forms during the foray into the cryptocurrency exchanges.

The cryptocurrency market is seeing breakthrough growth as altcoins hit all-time highs | Source: Crypto Total Market Cap on

The news of the closure of the crypto exchange came during a raid that accused a warehouse of diverting electricity. The warehouse is said to have used the diverted electricity in mining crypto using PlayStation 4 consoles.

Related reading | Lionel Messi is paid in crypto to join Paris Saint Germain

However, research by local corporate publisher Delo shows the warehouse used the in-game currency generation facility. They weren’t doing crypto farming with it – Delo continued to reveal.

Meanwhile, Cointelegraph previously reported that Ukraine’s parliament is considering issuing a new crypto law. This bill will propose legalizing cryptocurrencies across the country. However, this legislative measure is not intended to change the fact that Bitcoin (BTC) and cryptos are not legal tender.

The future of digital currencies in Ukraine

The Central Bank of Ukraine is currently running a project on the national digital currency. Since July, the National Bank of Ukraine has received official approval to start issuing CBDC (Central Bank’s digital currency).

In addition, there is a joint partnership between the Ministry of Digital Transformation and the Stellar Development Foundation. They work together to develop strategies for CBDCs and digital assets together.

However, the new crypto-related bill will allow payments in cryptocurrencies such as Bitcoin (BTC) in Ukraine, even if it is not considered legal tender.

Featured image from Pixabay, chart from