Trustee Plus Responds to National Bank of Ukraine’s P2P Operation Concerns

The National Bank of Ukraine has prohibited Trustee Global UAB from providing financial services.

The National Bank of Ukraine has prohibited Trustee Global UAB, the operator of the cryptocurrency wallet Trustee Plus, from providing financial payment services in the country without the necessary license for such activities.

What Happened?

Upon analysis, the regulator discovered instances of access being provided to a P2P platform and euro transfers between users without account opening. Such activities, under the Financial Services Act, require authorization from the National Bank, which the company lacked.

“Trustee Global UAB must cease providing [the listed] financial payment services until its activities comply with Ukrainian legislation, [or face the appropriate penalties],” the board’s resolution stated.

P2P Interaction in Ukraine is Effectively Prohibited

In a comment on the situation, Trustee CEO Vadim Grusha explained that the National Bank’s concerns arose at the end of July over seven points of potential violations.

“We promptly provided detailed explanations and objections. We managed to convince the regulator that most of the remarks about the app’s activities were unfounded. However, the NBU made a negative decision regarding the P2P platform and euro transfers between users,” he noted.

Grusha believes this has created “a negative precedent for the entire crypto market.”

“The decision of the National Bank of Ukraine effectively prohibits P2P interaction between users. Additionally, the NBU makes baseless assumptions about the operation of euro balances in the Trustee Plus app,” the top manager stated.

Grusha emphasized that since May 2024, the company has repeatedly offered to hold consultations with the regulator to explain the specifics of Trustee Plus’s activities. In response, the National Bank stated that “it currently lacks the authority to authorize cryptocurrency services/providers in the virtual assets sector” due to the absence of a relevant law in Ukraine.

Business Structure

Trustee Global UAB conducts operations with crypto assets, which the NBU’s decision does not criticize, while fiat operations are carried out by the Polish partner Quicko, licensed in the EU according to the local legislative framework, Grusha noted.

The situation has not affected Trustee Plus clients, whose assets remain secure. However, the registration of new users in Ukraine has been suspended since May 22 due to “regulatory uncertainty.”

“We are open to dialogue and, together with our partners, will seek a legal way to protect the rights of Trustee Plus. We will fight for the right of Ukrainians worldwide to have free access to modern fintech services,” added Vadim Grusha.

In early September, the Verkhovna Rada of Ukraine approved in the first reading a draft law “On Virtual Assets Markets,” which will define the status and taxation of cryptocurrencies in the country.

Later, a lawyer in a comment to ForkLog pointed out shortcomings in the document. He specifically recommended removing contradictions with the legal regime of Diia.City and easing sanctions for market players.