National Bank of Ukraine Bans Crypsee Service for Concealing Loans in Hryvnia as USDT

The National Bank of Ukraine (NBU) has officially declared a prohibition on the activities of 'Hi-Tech Dynamics Group Limited', which operates the financial service known as Crypsee. This decision comes after an in-depth examination of transactions conducted through this online service, revealing signs of providing financial services related to loans, which contravenes the Law of Ukraine 'On Financial Services and Financial Companies'. According to the NBU's statement, these services were disguised as loans in crypto-assets to evade compliance with Ukrainian legislation.

Data from the National Bank indicates that a thorough analysis demonstrated that Crypsee, while formally offering loans in USDT, was actually issuing credits in the national currency of Ukraine – the hryvnia. This was done in violation of all established regulatory mechanisms mandated by law. It is noteworthy that the transactions processed through Crypsee were found to be identical to those conducted via the BitCapital service, whose operations were also deemed illegal by the NBU.

The recognition of signs indicating the provision of financial services in transactions conducted on the Crypsee platform prompted the National Bank to initiate a corresponding investigation. This investigation involved a comprehensive review of contracts and information available on the Crypsee online resource, uncovering systemic violations of Ukrainian legislation. Among these were breaches of the maximum daily interest rate, non-compliance with consumer protection requirements, and the absence of mandatory information that should be disclosed on the website.

The National Bank of Ukraine emphasizes that the identified violations indicate the illegality of the operations conducted by 'HI-TECH DYNAMICS GROUP LIMITED PRIVATE LIMITED COMPANY' and the Crypsee service. This platform was effectively created to provide loans to individuals outside the legal framework of Ukraine and without proper regulatory oversight.

In light of these findings, the NBU has made the decision to recognize the presence of signs of financial services related to loan provision in transactions conducted through the Crypsee service. This decision marks a significant step in the fight against illegal financial practices in Ukraine.

Additionally, it is important to note that the National Bank of Ukraine previously imposed sanctions on 'Smartway Ukraine LLC', levying a fine of 11.64 million hryvnias and issuing a written warning for violations of consumer protection laws in financial services. This included requirements for engagement with consumers in resolving overdue debts.

The National Bank of Ukraine continues to monitor the situation in the financial market and is taking measures to protect the rights of financial service consumers. Consumers are advised to exercise caution and carefully review lending conditions to avoid potential risks.

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