The authorities of Ukraine have reportedly declared that the crypto exchanges are doing some illegal financial operations such as money laundering. The SBU, the security service of Ukraine, has put a stop to several exchanges of cryptocurrency which were allegedly involved in making illegal transactions after 2021 up till now. In its Wednesday statement, SBU related crypto exchanges to a ‘clandestine’ network notorious for their illegitimate transactions. The organization added that clandestine (the network of crypto exchanges) was set in Kyiv (the capital of the country). The exchanges in the network gathered up to $1.1M monthly turnover from the funds based on criminal activities.
The basis of illicit crypto funds
Currently, many people desire to remain anonymous during their online operations, and there are many methods to do that. It is believed by the organizations as well as privacy experts that being secret is the humans’ basic right. However, the anonymous transfers are identified as gray transactions by the watchdogs in the world of finance. In an announcement, the Ukrainian security service claimed that the crypto exchanges provided the transaction services which were tagged anonymous. SBU further stated that such illegal service could cause a risk of money laundering. It explained that certain people extracted money through such crypto exchanges throughout the country for planning a protest.
It has been disclosed by SBU that these illicit funds were started by e-wallets (electronic wallets) connected to the process of payment banned by Russia. Numerous of these wallets, such as WebMoney, Qiwi, Yandex, are responsible for carrying out such activities. The organization further revealed that it had recovered a few of the computers containing proof of the alleged illegitimate operations. It elaborated that some forged transcripts of incorporation regarding forms are also found during the investigation.
Ukrainian digital currencies in the prospective scenario
Ukrainian central bank is presently managing a program based on the country’s digital currency. After July, the Ukrainian bank has acquired official permission to issue a central bank digital currency (CBDC). For this purpose, a mutual contribution has been made between the Stellar Development Foundation and the Digital Transformation Ministry of the country. Both the partners are jointly attempting to develop regulations for the digital assets as well as CBDCs. Nonetheless, the latest bill regarding cryptocurrency will permit the crypto payments such as BTC (Bitcoin) in the country despite it is not a legal tender.