Illegal Cryptocurrency Exchanges in Ukraine are being shut down by Ukraine's Security Service.

Cryptocurrency exchanges are allegedly involved in illegal financial activities, including money laundering, according to Ukrainian authorities.

Since early 2021, Ukraine's Security Service, or SBU, has shut down a number of crypto exchanges suspected of transacting unlawfully.

In a statement released on Wednesday, the SBU referred to bitcoin exchanges as a network of "clandestine" entities notorious for their illegal transactions. The underground bitcoin trades network, they added, was based in Kyiv, the county capital. They processed $1.1 million in funds linked to illicit activity on a monthly basis as a group.

Numerous people today want to remain anonymous online, and there are many efficient ways to do so. Humans have a fundamental right to privacy, according to academics and groups. However, banking regulators around the world continue to classify anonymous transfers as gray payments.

In a statement, Ukraine's Security Service accused illegal crypto exchanges of providing anonymous transaction services.

This type of illicit service has been labeled as a money laundering danger, according to the SBU. They also revealed that some people used these crypto exchanges to send money across the country in order to organize a demonstration.

Where Do Illegal Cryptocurrency Funds Come From?

The illegal monies come via electronic wallets (e-wallets) linked to the Russian payment procedure, according to the SBU. Yandex, Qiwi, and WebMoney are just a few of them.

According to sources, the Ukrainian Security Service has recovered certain computers with proof of alleged unlawful actions. Furthermore, they are accused of forging documents of incorporation for the forms used in the bitcoin trading sites' foray.

The announcement of the crypto exchange's closure coincided with a raid accusing a warehouse of electricity theft. The warehouse was reported to have mined cryptocurrency with PlayStation 4 consoles using the diverted electricity.

However, an inquiry by Delo, a local business publication, revealed that the warehouse was utilized to generate in-game currency. Delo went on to say that they weren't using it to farm cryptocurrency.

In the meantime, Cointelegraph previously reported that Ukraine's parliament is considering passing a new crypto bill. This law proposes that cryptocurrency be legalized across the country. This legislative step, however, will not affect the fact that Bitcoin (BTC) and other cryptos are not legal cash.

In Ukraine, the Future of Digital Currencies

The Ukrainian Central Bank is actively working on a national digital currency scheme. The National Bank of Ukraine has had formal permission to begin issuing CBDC since July (central bank digital currency).

In addition, the Stellar Development Foundation and the Ministry of Digital Transformation have formed a cooperative relationship. They're working together to develop strategies for CBDCs and digital assets.

The new crypto-related measure, on the other hand, will allow payments in cryptocurrencies such as Bitcoin (BTC) in Ukraine, despite the fact that they do not qualify as legal cash.

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