Ukraine Authorities Request Financial Data from Local Crypto Businesses

The government of Ukraine has made a recent move to gather financial information from the local cryptocurrency industry. The National Bank of Ukraine (NBU) has requested four local crypto firms – Kuna, CoinPay, GEO Pay, and Qmall – to provide financial statements for the first two quarters of 2023. The NBU has given the companies seven days to submit the requested financial data.

The news about the NBU’s request was shared by Michael Chobanyan, the founder, and CEO of the Kuna exchange, who referred to a document circulated by the Ukrainian Telegram news channel, Politics of the country.

The document indicates that the NBU also sought data on the crypto businesses’ operating volumes, along with information about funds’ receipt and transfer. Additionally, the NBU requested that the firms issue statements for all their accounts since the beginning of 2023.

Michael Chobanyan confirmed the news on his own Telegram channel, expressing uncertainty about the reasons behind the NBU’s actions. He stated that such information had never been requested before in Ukraine, and he believes the government’s intentions are becoming increasingly clear.

In the past two weeks, the Ukrainian crypto industry has experienced the first wave of searches at exchanges, which Chobanyan attributes to the NBU, the Ministry of Internal Affairs, and the Security Service of Ukraine. He anticipates more searches and exchange-related actions in the future.

Chobanyan shared that Kuna exchange left the business-to-customer market in Ukraine in March 2023 due to what he calls “predatory actions” by the NBU. The company’s exchange volumes have significantly reduced over the past few months. Although Kuna lost a significant portion of its volumes when it exited the Russian market in 2022, it is now focusing on Europe and the B2B market.

Despite the growing hostility from Ukrainian authorities towards the crypto industry, Chobanyan finds some benefits in the government’s actions. He sees this as an opportunity to transform Kuna into a successful European company rather than being limited to the niche of a Ukrainian player.

CryptoNea reached out to the NBU for comment, and the article will be updated pending their response.

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