Ukrainian authorities reportedly reportedThe cryptocurrency exchanges are involved illicit financial activities including money laundering.
SBU, Ukraine’s security service, has shut down crypto exchanges that were allegedly involved in illegal transactions.
In a Wednesday statement, the SBU called network cryptocurrency exchanges “underground” for their illicit transactions. The underground cryptocurrency exchange network was located at Kiev, the county capital. They processed $ 1.1million per month in criminal activity revenue.
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The Ukrainian Security Service announced that illegal crypto exchanges were providing anonymized transaction services.
SBU also stated that this type illegal service is a money laundering threat. They also revealed that some people funneled funds through these crypto exchanges throughout the country in order to stage a demonstration.
The source of illegal cryptocurrency money
The SBU discovered that illegal funds were coming from electronic wallets (electronic pockets) linked to the Russian payment process. There are many such as Yandex, Qiwi and WebMoney.
According to reports, the Ukrainian Security Service has found evidence of illegal activity on computers. During the foray to cryptocurrency exchange platforms, they allegedly forged embedding papers for forms.
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The news about the crypto exchange’s shut down came during a raid in which a warehouse was accused of misappropriating electricity. According to reports, the warehouse used diverted electricity to mine cryptocurrency with PlayStation 4 consoles.
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Delo, a local trading publisher, discovered that the warehouse was using the facility to generate in game currency. Delo revealed that they were not growing crypto with it.
Cointelegraph previously reported that the Ukraine’s parliament was considering issuing a new cryptocurrency bill. This bill will allow cryptocurrency to be legalized in the country. However, this legislation is not intended to change that Bitcoin (BTC), as well as cryptos, are not legal prices.
The future of digital currency in Ukraine
The Central Bank of Ukraine currently manages a project about the national digital money. The National Bank of Ukraine has been authorized by the CBDC (central bank’s digital currency) to begin issuing national digital currencies since July.
The Ministry of Digital Transformation and Stellar Development Foundation also have a partnership. They work together to develop strategies for digital assets and CBDCs.
The new crypto-related bill will however allow payments in cryptocurrencies such as Bitcoin (BTC), even though it is not legal tender.
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