Ukrainian Banks Tighten Scrutiny on Cryptocurrency Transactions
Ukrainian banks are increasingly flagging and blocking accounts tied to cryptocurrency transactions, citing automated algorithms designed to detect suspicious activity. Trigger phrases like "for crypto" or "currency exchange" in payment descriptions now prompt immediate scrutiny, alongside transfers to exchanges and peer-to-peer platforms.
The National Bank of Ukraine's Resolution No. 65 grants institutions broad authority to freeze accounts without warning. Legal experts identify three key red lines: crypto-related transfers to unregulated exchanges, abrupt income spikes without documentation, and ambiguous payment purposes like "debt repayment" on personal accounts.
This crackdown coincides with rising P2P crypto activity in Ukraine, where digital asset regulation remains incomplete. Banks now treat exchange-bound transfers with the same suspicion as potential money laundering vectors, creating friction for retail investors.
