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Ukraine's Oldest Crypto Exchange, Kuna, Shuts Down After Authorities' Sudden Ban

Coin WorldFriday, Jan 31, 2025 12:03 pm ET

1min read

Ukraine's oldest cryptocurrency exchange, Kuna, has shut down following a ban imposed by the Ukrainian authorities. The exchange, which was operational since 2014, was abruptly blocked without any official explanation from the authorities.

The ban was ordered by Ukraine's State Service of Special Communications and Information Protection, which directed internet service providers to block access to Kuna's domain and its subdomains. The directive cited a decision by the Shevchenkivskyi District Court of Kyiv and a request from Ukraine's Bureau of Economic Security, but the specific reasons for the ban remain unclear.

Kuna's founder and CEO, Michael Chobanian, revealed in Telegram posts that he was not informed by the authorities about the ban and only found out when users started reporting the issue. He also mentioned that the ban will remain in effect until martial law in Ukraine is lifted.

Founded in 2014, Kuna played a significant role in facilitating cryptocurrency adoption in Ukraine. In early 2022, Kuna partnered with Ukraine's Ministry of Digital Transformation to create a special dedicated Crypto Fund for Ukraine, which accumulated over $100 million worth of crypto donations to support the Ukrainian army.

In a subsequent Telegram post, Chobanian announced the exchange's closure and gave users two months to withdraw their funds. He also hinted that the ban was a result of his failure to pay kickbacks to a Ukrainian law enforcement agency desperate to find money to fund the country's economy.

According to Ukrainian news outlets, the Economic Security Bureau of Ukraine is investigating Kuna for alleged tax evasion. Officials reportedly claim a forensic audit confirmed "intentional tax evasion," leading to a court decision to block the platform. A law enforcement source told local media that Ukraine's potential losses amount to around 50 million hryvnia (approximately $1.3 million) due to the tax evasion.

Following the ban, Chobanian announced that Kuna has shut down all of its commercial operations and that he will focus on symbiocracy, a government model that combines artificial intelligence and nature. He also expressed optimism about the future of cryptocurrency, pointing to the growing interest in Bitcoin from the Trump administration.

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