Daily Crypto News & Musings

Kuna Crypto Exchange Closes in Ukraine After Sudden Ban: Founder Shifts to Symbiocracy

Kuna Crypto Exchange Closes in Ukraine After Sudden Ban: Founder Shifts to Symbiocracy

Kuna’s Closure: Ukraine’s Oldest Crypto Exchange Shuts Down Amidst Sudden Ban

On January 30, 2025, Kuna, Ukraine’s oldest crypto exchange, was forced to shut down following an abrupt ban by Ukrainian authorities, leaving users scrambling to withdraw their funds.

Kuna, a trailblazer in Ukraine’s crypto scene since 2014, ceased operations without any prior warning to its founder, Michael Chobanian. The ban, executed by Ukraine’s State Service of Special Communications and Information Protection, was based on a decision by the Shevchenkivskyi District Court of Kyiv and a request from the Bureau of Economic Security. The authorities cited allegations of intentional tax evasion, claiming potential losses of around 50 million hryvnia (approximately $1.3 million) to the state.

The suddenness of the ban left users in a lurch. While only those inside Ukraine are affected by the domain block, Kuna’s infrastructure, hosted on European cloud servers, remains accessible to users outside the country. Chobanian has given users a two-month window to withdraw their funds before the platform’s complete shutdown.

Chobanian, who learned of the ban through user reports on Telegram, didn’t hold back in his critique of the situation. He suggested that the ban might be retaliation for his refusal to pay kickbacks to law enforcement. “Unfortunately, I didn’t manage to meet with all the [law enforcement] agencies. I’m familiar with all the law enforcement officers in Ukraine, except for the Economic Security Bureau of Ukraine. Well, in our country, it’s the usual thing for law enforcement agencies to get to know through raids, as a rule. But since I’m not in Ukraine, and it’s extremely difficult to raid a virtual thing, that’s why they blocked the domain,” he stated.

Despite the setback, Chobanian remains optimistic about the future of crypto. “Crypto enthusiasts in Ukraine don’t need to be told how to use crypto freely, so we are watching the crypto revolution in the U.S., Bitcoin being added to foreign exchange reserves, and the price of the TRUMP memecoin,” he added. His next venture? A shift towards symbiocracy, AI, and public social activity, signaling a move away from the commercial crypto world.

Symbiocracy is a new way of governing where people use AI and nature to make decisions together, considering how everything on Earth is connected. This move comes after years of friction with Ukrainian regulators, including Chobanian’s criticism of the National Bank of Ukraine for stifling the local crypto market with stringent regulations on hryvnia-based crypto transactions in August 2024.

Kuna’s closure is a stark reminder of the ongoing tensions between crypto businesses and regulatory bodies in Ukraine. The platform had been instrumental in facilitating crypto adoption in the country, even creating a Crypto Fund for Ukraine in partnership with the Ministry of Digital Transformation, which raised over $100 million in crypto donations to support the Ukrainian army during the 2022 conflict. This ban, set to remain in effect until martial law in Ukraine is lifted, highlights the challenges faced by crypto exchanges not just in Ukraine but globally. Yet, amidst these challenges, the spirit of decentralization and innovation persists, with figures like Chobanian looking to new horizons in the quest for a more inclusive and interconnected future.

The TRUMP memecoin, mentioned by Chobanian, refers to a cryptocurrency created as a meme, often linked to political figures or events. Martial law, on the other hand, refers to a state of emergency where the military takes control of governance.

It’s worth noting that while Kuna’s closure is a blow to Ukraine’s crypto scene, the decentralized nature of Bitcoin and other cryptocurrencies offers a potential counterbalance to such regulatory crackdowns. Bitcoin’s resilience and global adoption continue to grow, suggesting that the ideals of decentralization and financial sovereignty are far from being quashed by local regulatory actions.

However, it’s also important to consider the perspective of the Ukrainian authorities. They are tasked with enforcing tax compliance and ensuring economic stability, which can sometimes clash with the rapid, often unregulated growth of the crypto sector. While the ban on Kuna may seem harsh, it’s part of a broader effort to regulate an industry that has been prone to scams and financial irregularities.

As for Chobanian’s new focus on symbiocracy, this governance model aims to integrate AI with nature to create a more holistic approach to decision-making. By considering the interconnectedness of all systems on Earth, symbiocracy could potentially offer a more sustainable and inclusive future for governance, aligning with the broader goals of decentralization and empowerment through technology.

Key Takeaways and Questions

  • Why was Kuna banned in Ukraine?

    Kuna was banned due to a decision by the Shevchenkivskyi District Court of Kyiv, following a request from the Bureau of Economic Security. The ban is linked to allegations of intentional tax evasion.

  • How did Kuna facilitate crypto adoption in Ukraine?

    Kuna played a key role in Ukraine’s crypto adoption by being one of the first platforms to trade cryptocurrencies like Bitcoin and Ethereum. It also created a Crypto Fund for Ukraine, which raised over $100 million to support the Ukrainian army.

  • What is Michael Chobanian’s perspective on the ban?

    Chobanian suggests the ban might be linked to his refusal to pay kickbacks to law enforcement. Despite the closure, he remains optimistic about global crypto trends and is shifting focus to symbiocracy, AI, and public social activity.

  • What are the implications for Kuna users due to the ban?

    Users inside Ukraine are affected by the domain block, but those outside Ukraine can still access the platform. Users have two months to withdraw their funds.

  • What is symbiocracy, and how does it relate to Chobanian’s new focus?

    Symbiocracy is a governance model where people use AI and nature to make decisions together, considering how everything on Earth is connected. Chobanian plans to focus on this model along with AI and public social activity, signaling a shift away from commercial crypto operations.