Ukraine Requiring Crypto Businesses to Submit Financials

NBU Demands Financial Information from Ukrainian Crypto Firms

The government of Ukraine recently approached four local crypto firms — Kuna, CoinPay, GEO Pay and Qmall — with a request to provide certain financial information. The National Bank of Ukraine (NBU) demanded the crypto businesses to provide financial statements for the first two quarters of 2023 within seven days.

Michael Chobanyan, the founder and CEO of the Kuna exchange, shared the news about the latest NBU’s request on July 3, citing a document distributed by the Ukrainian Telegram news channel “Politics of the country.” According to the document, the NBU also requested the firms to provide data on operating volumes as well as information about reception and transfer of funds. Furthermore, the NBU asked the Ukrainian crypto firms to issue statements for all accounts from the beginning of 2023.

The NBU’s request is a significant development for the crypto industry, as it demonstrates the government’s commitment to the crypto sector. The move is likely to further bolster the industry, as it will help to create a more transparent and secure environment for crypto trading. Moreover, it will also help to ensure that the industry is in compliance with the regulations and laws of the country.

Kuna Exchange Leaves Ukraine Amid NBU Actions

Kuna CEO Chobanyan later confirmed the news on his own Telegram channel, implying that the reasons for the latest action from the NBU are not clear. “There is no such information in Ukraine and has never been,” Chobanyan argued, adding that searches revealed that back in 2015, before the launch of Kuna. He went on to say that the direction of the “so called” government is evident, noting:

Chobanyan told Cointelegraph that Kuna exchange left its crypto business-to-customer market in Ukraine in March 2023 due to “predatory actions” by the NBU. “They are very consistent in killing the potential of my country in crypto and Web3 space,” Chobanyan said, noting that Kuna’s exchange volumes have shrunk 90% over the past few months. Previously, Kuna lost about 60% of its volumes when it had to leave the Russian market after Feb. 24, 2022, the CEO told Cointelegraph.

Crypto Industry in Ukraine

Despite Ukrainian authorities reportedly becoming more hostile to the crypto industry, Chobanyan still sees some advantages from the government’s recent action.

“Now we focus on Europe and especially the b2b market,” he said, adding that Kuna recently launched the crypto acquiring service KunaPay. “I do not know whether it’s related to the fear that we will launch this service in Ukraine or not,” Chobanyan continued.

“I am grateful to the NBU for stimulating me to be a successful European company instead of a niche Ukrainian player,” he added.

The NBU accepted Cointelegraph’s request for comment but did not immediately respond to it. This article will be updated pending new information.