The National Bank of Ukraine (NBU) has discovered and exposed an illegal lending scheme through the online service BitCapital , which disguised hryvnia loans as “cryptocurrency loans.” According to the regulator, this scheme affected more than 700 Ukrainians, most of whom were socially vulnerable citizens and military personnel.
At first glance, the service offered loans in the cryptocurrency USDT (Tether), but after in-depth analysis it became clear that the loans were actually issued in hryvnia. The company operated outside the legal framework of Ukraine, bypassing regulatory mechanisms and violating financial services laws.
“BitCapital formally provided loans in crypto assets, but in fact provided loans in the national currency of Ukraine. All this was hidden in the contract, which misled consumers,” the NBU said.
In addition, the company used a non-resident legal entity, Golden Interest Group Limited , registered abroad, to avoid regulation by Ukrainian financial authorities.
The National Bank identified the following violations:
- Excessively high interest rates that exceed legally established limits.
- Non-compliance with consumer protection standards, including the lack of a clear reflection of the full cost of the loan.
- The lack of transparency in the terms of lending, which led to misleading customers.
- Lack of mandatory information on the company's website.
The victims, including socially vulnerable citizens and military personnel, did not receive benefits provided for by law, and their debts were collected using harsh methods.
The regulator has determined that key individuals at BitCapital have signs of a less than impeccable business reputation. This may be grounds for sanctions and further legal action.
“The only legal means of payment in Ukraine is the hryvnia. And the lack of full-fledged legislation on the circulation of virtual assets creates loopholes that are exploited by unscrupulous companies,” the NBU reminded.
The National Bank of Ukraine urges citizens to be extremely careful when cooperating with online platforms, especially those that work with cryptocurrencies. The regulator reminds of the risks that accompany such operations and recommends carefully checking information about financial services.
