Ukraine Demands Crypto Firms To Disclose Financials Amidst Looming Wider Regulation

The National Bank of Ukraine (NBU) required at least four virtual asset companies including Kuna, CoinPay, Geo Pay, and Qmall to file financial documents and other required information within seven days, which has aroused concerns over new regulatory measures.

According to the information released, the NBU also hopes that crypto firms provide transaction information, such as operational volumes and the flow of all crypto assets.

Michael Chobanyan, CEO of Ukrainian digital asset exchange Kuna, confirmed the circulation of this document and stated that the reason is not yet clear.

This move by the Ukraine government has puzzled many people about the country's recent crackdown on cryptocurrency activities. Many digital asset executives described this decision as "crippling." 

Besides financial requirements, crypto firms are required to submit all account statements in 2023. Chobanyan also expressed disappointment for the "predatory actions" of the National Bank, which led to the exchange abandoning its business-to-customer model in the country.

Chobanyan noted that the Ukraine government has previously raided exchanges as a result of actions by the NBU and other regulators.

"Over the past two weeks, the first wave of searches in exchanges took place in Kyiv and across Ukraine, which were triggered by the actions of the NBU, Ministry of Internal Affairs, and the Security Service of Ukraine. There will be more searches and exchanges."

The recent regulatory policies by Ukrainian authorities have slowed down the development of Web3 firms in the country. After Kuna moved away from its  business-to-customer model, its trading volumes plummeted. Chobanyan said that trading volumes on Kuna plummeted by 90% within a few months.

Despite regulatory bottlenecks, Ukrainian markets still show great potential. According to the data from the blockchain firm Crystal Blockchain, Ukraine has received up to $225 million in cryptocurrency donations since the Russia-Ukraine War.

Chobanyan pointed out that he has seen a positive side in Ukraine's recent developments, and added that he has now promoted the company to "focus on Europe, especially the B2B market, rather than becoming a "niche Ukrainian player".

(Source: Cryptonews)