Ukraine’s financial monitoring agency has restricted access to a number of online cryptocurrencies operating outside of Russia. Some of the coin trading platforms work with sanctioned Russian banks, the regulator said in its report.
Ukrainian Financial Authorities Target Russian Crypto Exchange Websites and Wallets
The State Financial Monitoring Service (SFS), a division of Financial Intelligence of Ukraine, has published a special report on the results of its operations in 2022. The agency announced that it contributes to the country’s defense in peacetime, in addition to its anti-money laundering activities. Efforts as part of the ongoing conflict with Russia.
In a document published this week, the watchdog announced that its employees have joined forces with their colleagues at the Ministry of Digital Transformation and leading Ukrainian crypto experts. Together, they were able to identify Russian cryptocurrency exchanges linked to sanctioned Russian financial institutions, including Russia’s largest bank, Sber.
The Ukrainian financial regulator did not disclose the exact number of these platforms or their domain names, but stressed that the goal is to block them completely.
Also, in close cooperation with cryptocurrency providers in Ukraine and abroad, SFMS introduced the mechanism “Blocking crypto wallets of the Russian Federation”. It is not clear whether this refers to Russian wallets in general or one associated with the government in Moscow.
The state service recalled that last year it appealed to Binance, the world’s largest cryptocurrency exchange, and offered to take measures to “prevent aggression of the Russian Federation in the market of virtual assets” and prevent peer-to-peer transactions for users of various Russian banks. payment systems.
“Other practical measures related to the blocking of Russian cryptocurrencies and operations of Russian residents have been implemented,” the agency added, without elaborating. While severing ties with the regulators of Russia and Belarus, it cooperates with the financial authorities of about 140 countries in this matter.
Ukraine is engaged in a regional initiative to prevent money laundering through Cryptocurrency
SFMS also noted that Ukraine, Georgia and Moldova – countries with a steadily growing cryptocurrency market and mining sector – are involved in cooperation aimed at reducing money laundering through digital assets. The project is implemented with the support of the UN and OSCE.
The report coincided with a statement by Ukraine’s Digital Transformation Minister Mykhailo Fedorov, who promised the country would become the “best crypto jurisdiction in the world” after finalizing a regulatory framework for the industry.
In the past few years, Ukraine has established itself as a leader in Eastern European cryptocurrency adoption and has been accepting crypto donations since the beginning of the Russian occupation. Its parliament adopted the law “On Virtual Assets” last February and is preparing relevant amendments to the Tax Code.
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