Ukrainian Crypto Market: Trustee Plus, Weld Money Exit Amid NBU Regulatory Scrutiny

The Ukrainian digital asset landscape is experiencing significant shifts as prominent crypto firms adjust their market presence amidst escalating regulatory scrutiny. The recent withdrawals of Trustee Plus and Weld Money from the Ukrainian market highlight a growing tension between innovative financial technology and national monetary policy objectives, particularly concerning the use of crypto-enabled payment cards.

• Crypto wallet Trustee Plus suspended new user registrations for Ukrainians in May.
• Weld Money announced its complete departure from the Ukrainian market.
• Both companies previously offered crypto cards to Ukrainian users.
• The National Bank of Ukraine (NBU) intensified scrutiny of these financial instruments.
• NBU’s concerns include potential circumvention of fiat restrictions and capital outflow.
• Trustee Plus asserts it operates under European standards, processing transactions in euros.

Regulatory Landscape and Market Withdrawals

In May, the crypto wallet provider Trustee Plus suspended new user registrations for individuals in Ukraine, while Weld Money announced its complete departure from the market. Both entities had previously provided crypto card services to Ukrainian users, facilitating transactions with digital assets. According to sources cited by Forbes Ukraine, these strategic decisions were largely precipitated by heightened interest from the National Bank of Ukraine (NBU) in the operational models of these specific financial instruments.

The NBU’s increased attention reportedly stems from concerns that crypto cards could be exploited to bypass existing national restrictions on fiat currency operations with cryptocurrency exchanges. Furthermore, regulators fear these instruments might inadvertently facilitate capital outflow, posing a challenge to the nation’s financial stability. Despite these expressed regulatory concerns, official records from the Bureau of Economic Security indicate that no criminal proceedings have been initiated against either Trustee Plus or Weld Money, suggesting the scrutiny is primarily supervisory rather than punitive at this stage.

Trustee Plus’s Stance and Operational Model

Trustee Plus, in a written statement, asserted that it does not conduct operational activities within Ukraine, thereby suggesting that Ukrainian state authorities lack direct jurisdiction to audit its operations. Vadym Hrusha, CEO of Trustee Plus, has further clarified that the company adheres strictly to European legislative standards, with a licensed Polish financial institution serving as the designated card issuer. He emphasized that all transactions are processed in euros, and users undergo standard Know Your Customer (KYC) verification processes, aligning with international anti-money laundering protocols.

Hrusha contends that, contrary to facilitating capital flight, the use of these foreign-issued cards within Ukraine actually represents an inflow of foreign currency into the national economy. To underscore this point, he referenced an incident where Quicko, a Polish partner, blocked 7,148 cards linked to Ukrainian addresses. Hrusha argued that this action paradoxically reduced the foreign currency inflow into the country, demonstrating the economic contributions made by such services.

Navigating Regulatory Ambiguity

The CEO further highlighted Ukraine’s nascent and often ambiguous regulatory framework for the cryptocurrency market as a significant impediment to stable operations and economic development. This lack of clear legal guidelines, he argues, creates an environment where business operations—even when fully compliant with established European norms—can be subject to varied interpretations by domestic authorities. This regulatory uncertainty not only introduces operational risks for businesses but also potentially hinders foreign currency contributions to the national economy, complicating efforts to attract and retain digital asset service providers. The current environment, therefore, necessitates a more defined and predictable regulatory landscape to foster innovation while ensuring national financial security.