Because of government laws, the crypto business in Ukraine has recently faced major obstacles. The National Bank of Ukraine (NBU) has sent a new request to the local cryptocurrency industry for financial information. This information must be delivered within seven days. This has caused widespread alarm and resulted in high trade volume on the Ukrainian cryptocurrency market Kuna.
The NBU’s request was directed at four local cryptocurrency companies: Kuna, CoinPay, GEO Pay, and Qmall. The government expects these businesses to submit financial accounts during the first two quarters of 2023. In addition, the NBU is looking for information on operational volumes and financial transfers. They also want statements for all accounts commencing with the first of the year.
Since March, the CEO of Kuna has reported a 90% reduction in trading volumes on their platform. The NBU’s activities have been blamed for this. The CEO highlighted his surprise about the government’s actions, as well as his fears about the possible detrimental influence on the country’s crypto and Web3 area.
The scenario has prompted frustration among the Ukrainian crypto community since the government’s actions are perceived as threatening the industry’s future growth. Due to NBU pressure, the Kuna crypto exchange for instance was forced to depart the Ukrainian business-to-customer sector.
NEWS: 🇺🇦 #Ukraine Govt. demands financials from local crypto businesses, causing 90% drop in trading volumes on Kuna exchange!
— Walletor (@walletorapp) August 1, 2023
This is not the first time the Ukrainian government has challenged the crypto business. When Kuna was forced to exit the Russian market in 2022, it lost almost 60% of its trade volumes. As the issue develops, there are fears that more government activities may result in additional searches and exchanges in the future. Many industry professionals and investors are keeping a close eye on the developments.
Finally, the National Bank of Ukraine’s recent request for financial information from local crypto firms has resulted in a drop in trade volumes. Furthermore, it has caused alarm among industry participants. The government’s moves are perceived as potentially impeding the country’s cryptocurrency industry’s expansion. The influence on the market and the future of cryptocurrency enterprises in Ukraine remains unpredictable as the scenario progresses.