The National Bank has uncovered illegal activities by the online service "BitCapital" (updated).
The National Bank has uncovered the online service "BitCapital" attempting to circumvent financial legislation: the company created an illegal scheme for providing loans, disguising its activities as operations involving crypto assets.
This was reported by the regulator's press service.
More than 700 individuals have suffered due to the company's activities. Among them are socially vulnerable groups, as well as military personnel, to whom the company denied the benefits stipulated by legislation and aggressively pursued debt collection.
“An in-depth analysis revealed that the online service ‘BitCapital’ built a complex mechanism to bypass the law: formally offering loans in USDT, they actually issue credits in hryvnias, evading all established regulatory mechanisms set by law,” the regulator stated.
The National Bank identified systemic violations of the law:
- exceeding the maximum allowable interest rates;
- manipulation of information disclosure regarding the actual cost of the loan;
- deceiving consumers about the terms of the contract.
All of this occurred against a backdrop of complete opacity regarding the terms of service provision and a deliberate evasion of regulatory requirements.
“BitCapital” is owned by the non-resident company GOLDEN INTEREST GROUP LIMITED. It is noted that the service was essentially created to provide loans to individuals outside the legal framework of Ukraine and without the appropriate regulatory oversight.
The National Bank has appealed to the National Police and the Bureau of Economic Security requesting all necessary measures to halt the illegal activities of the online service “BitCapital.”
Updated at 21:06:
The NBU clarified that “BitCapital” is owned by the company SOCIAL FINANCE CARE AND WELLBEING INVESTMENTS LLP, but the nature of the services provided has not changed. According to the registration documents on the service's website, the firm was registered in 2015 in London.