- In a recent bust-up, the Security Service of Ukraine interrupted the functioning of an international payment network.
- It was carrying out criminal activities such as money laundering via cryptocurrency paraphernalia.
- The felons created several fake sites that allowed citizens of Ukraine and the Commonwealth of Independent States to convert cryptocurrency without any proof of the same.
Setup in 1918, the Security Service of Ukraine has won over criminal activities and terrorist ploys several times. In a recent bust-up, the agency interrupted the functioning of an international payment network. It was carrying out criminal activities such as money laundering via cryptocurrency paraphernalia.
Modus Operandi of criminals
The felons created several fake sites that allowed citizens of Ukraine and the Commonwealth of Independent States to convert cryptocurrency without any proof of the same. The receiver and sender details were not verified combined with the necessary disclosure of tax reporting. The platform did not pay the relevant fees to the state authorities as required.
Towards the end of last year, the country invoked FATFs crypto policies for safeguarding the interests of online investors. Rada. Ukraine’s legislative body passed a law that transactions worth less than 30,000 hriven would be monitored through the public key. The sender scrutinized in such cases for background verification. However, shadow transactions carried out right under the nose of the licensees of the National bank of Ukraine.
Strict regulation and implementation of Crypto laws in Ukraine
Earlier, Binance assured the Ukrainian government that it would help the latter to regulate digital currency in the country. Several raids at the perpetrator’s homes’ unearthed foreign currency, bank cards, and computer equipment used in the scam. It showed that laws were not implemented properly and strict regulation is the need of the hour.
Access to the WebMoney payment system blocked by the government two years ago. Moreover, Russian sim cards and routers were also found during the raids conducted. The magnanimity of the scam is shocking and users have now become skeptical of the digital assets environment.
Progressive legislation plays a vital role in bringing about reforms in the virtual asset space. The unaccounted currency issued through the National Bank of Ukraine shows the bureaucratic culture of the employees which is poor and shabby. Hence, the government will look forward to implementing the FATF’s policies more strictly within the country.