Ukrainian online service BitCapital, which provides loans in USDT stablecoins, has created an illegal lending scheme, according to the NBU.

The regulator received over 700 complaints from citizens about high interest rates, improper charges, aggressive debt collection, and non-transparent lending terms.

The National Bank’s investigation revealed that while BitCapital formally issued loans in USDT, it actually provided them in hryvnia, bypassing regulations.

“Systemic violations were found: exceeding legal interest rate limits, manipulating disclosure of real credit costs, and misleading consumers about contract terms,” the NBU stated.

The company is prohibited from operating in Ukraine until it complies with all financial market regulations.

“The virtual asset sector is still forming, creating risks of manipulation by unscrupulous players. The lack of comprehensive legal regulation leads to dangerous schemes,” the regulator added.

The NBU forwarded its findings to the National Police and the Bureau of Economic Security, requesting measures to stop BitCapital’s illegal activities.

The regulator also identified financial institutions cooperating with the service and plans to develop mechanisms to protect legitimate market participants from such “partnerships.”

Earlier, the Bureau of Economic Security requested a court to block the crypto exchange Kuna over alleged tax evasion. Company founder Mykhailo Chobanian decided to shut down the platform and cease operations in Ukraine.

In September 2024, the NBU urged commercial banks to monitor P2P transfers to prevent fraud under the new 150,000-hryvnia limit effective from October 1.