• Ukraine’s Financial Monitoring Service has blocked access to online crypto exchangers operating out of Russia.
• The SFMS has identified crypto exchanges associated with Russian financial institutions placed under sanctions.
• The SFMS has also introduced a mechanism for “blocking of crypto wallets of the Russian Federation.”
The State Financial Monitoring Service (SFMS) of Ukraine, a unit of the country’s financial intelligence, has recently issued a report on the results of its operations in 2022. This report revealed that the agency has contributed to the protection of the state from the aggression of the Russian Federation in the virtual asset market.
To combat money laundering and other financial crimes, the SFMS has blocked access to a number of online crypto exchangers operating out of Russia. It worked closely with crypto service providers in Ukraine and abroad to identify crypto exchanges associated with Russian financial institutions placed under sanctions, including Sber, the largest bank in Russia. It is unclear the exact number of these platforms or their domain names but the aim was to fully block them.
In addition to blocking access to these crypto exchanges, the SFMS has also introduced a mechanism for the “blocking of crypto wallets of the Russian Federation.” It is not clear whether this is referring to Russian wallets in general or those linked to the government in Moscow. The SFMS also stated that it had requested the world’s largest crypto exchange, Binance, to take action to curb the aggression of the Russian Federation in the virtual assets market and prevent peer-to-peer transactions for users of these wallets.
The SFMS is determined to protect Ukraine from the threat of the Russian Federation in the virtual assets market. It will continue to take steps to restrict access to crypto exchanges and wallets linked to Russian financial institutions, as well as to identify and block transactions made from these wallets. This will ensure the safety of the Ukrainian citizens and the security of the country’s financial system.