Crypto companies in Ukraine are under pressure, following new govt orders
The national bank of Ukraine (NBU) asked for detailed financial information from the crypto exchanges related crypto activities.
Ukraine is an averagely crypto-friendly country. After Q1 2022, the inclination of the Ukrainian government & citizens surged rapidly toward the crypto sector, because of the Russia vs Ukraine geopolitical conflict. Following the Russian military invasions on the Ukrainian military, the crypto trade volume on the majority of the crypto exchanges surged rapidly. To fight against potential financial stability risks, the Ukrainian government brought some new rules, so that citizens could swap limited amounts of money against cryptocurrencies.
In the latest, the NBU ordered all the local crypto exchanges to provide exchange data, including disclosures for crypto platforms volumes, transfer data, and all accounts opened from the beginning of 2023.
Because of such government-level interference & activity in the crypto sector, the majority of the crypto traders in this country are trying to remain away from local crypto exchanges & crypto trading.
All such things are resulting in a very bad outcome for the crypto companies, as the crypto trade volume on the exchanges is plunging badly.
Michael Chobanyan, founder and CEO of local crypto exchange Kuna, spoke about this situation with Cointelegraph news media.
Chobanyan said that the Ukrainian government’s harsh policies are causing negative impacts on this sector and indirectly trying to kill this sector, as people are rapidly leaving crypto-related activities.
According to the Kuna founder, if the government will bring such harsh crypto policies continuously then it will slow down the innovation speed of Ukraine’s Web3 sector.
Russia vs Ukraine
In Q1 2022, Russia vs Ukraine geopolitical conflict started and after the war, the stance of both countries toward the crypto sector became highly positive.
In Dec 2021, the Bank of Russia was planning to impose a blanket ban on crypto-related activities in the Russian Federation but later in early 2022 the whole situation changed and the majority of the Russian government agencies opposed the central bank’s crypto ban proposal.
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