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In the conditions of martial law in Ukraine, citizens face a number of challenges affecting their daily lives. One of the current problems is the preservation of financial anonymity and security, especially for Ukrainian men who are at risk due to constant rumors of possible sanctions for evading military service, including the blocking of bank accounts.
Is it even possible to withdraw money anonymously in Ukraine? In this article, we will explore various options for anonymously withdrawing funds in this country. We will compare the capabilities and conditions offered by Ukrainian and European banks, foreign payment systems, and cryptocurrency instruments. We will look at the advantages and disadvantages of each of these options, and determine which of them might be more effective and safe for withdrawing funds in the context of existing legal restrictions.
What’s Wrong with Ukrainian Banks?
It is no secret that Ukrainian banks are dependent on Ukrainian legislation. According to this legislation, banks are required to provide information to government authorities and may even be forced to block clients’ accounts at the request of financial monitoring. Although such cases are not common at the moment, constant rumors about possible inspections, sanctions for evading military service may lead to the introduction of strict measures in the future. Therefore, it is worth considering alternative options for maintaining financial anonymity and security.
European Banks
Compared to their Ukrainian counterparts, European banks are known for their stability and reliability. Additionally, the Euro currency has long been considered more stable for storing money.
However, lately, the banking sector has become even more regulated due to the introduction of the Automatic Exchange of Information (AEOI), which concerns the exchange of data about financial accounts between tax authorities of different countries. Now, this standard is applied in more than 110 jurisdictions, including the countries of the European Union. This means that Ukrainians who have accounts in European banks are now subject to tax monitoring. While this indicates a direction towards transparency in the financial sector, for those looking for anonymous ways to store money, European banks are not an option.
Foreign Payment Systems
It might be a revelation for some, but foreign payment systems such as Wise, Revolut, PayPal, Payoneer, and others are also subject to European legislation. Introduced by the Organisation for Economic Co-operation and Development (OECD) as part of the Common Reporting Standard (CRS), the automatic exchange of information is now mandatory for participant countries, including those in Europe.
This means that information about financial accounts, including those owned by Ukrainians, can be automatically exchanged between tax authorities. Therefore, using foreign payment systems as an alternative method for anonymously storing funds is also not an option.
Cryptocurrencies
In this section, we will consider three subtypes of cryptocurrency instruments that can be used for anonymous fund withdrawals in Ukraine: exchanges, decentralized wallets, and cold wallets. Each of these methods has its unique features and advantages, which we will discuss in more detail.
Cryptocurrency Exchanges
Today, cryptocurrency exchanges have become a popular means for exchanging and trading various cryptocurrencies. Some of the most well-known cryptocurrency exchanges include platforms like Binance, Coinbase, Kraken, Bitfinex, and others. However, surprise!
All these cryptocurrency exchanges impose mandatory requirements for user verification (KYC – Know Your Customer), which includes providing personal data and documents for identity and verification (not to be confused with AML – Anti-Money Laundering systems). This makes using cryptocurrency exchanges for anonymous fund withdrawals impossible, as all operations are linked to specific users and are subject to appropriate regulation and control.
Of course, if you are transferring not very large amounts, not doing anything illegal, even if you are a trader with small limits, there is nothing to fear. But it is always important to remember that when using a cryptocurrency exchange, you are not the holder of your funds, the exchange is. And it decides in contentious situations whether you will see your money or not.
Decentralized Wallets
The most popular right now is MetaMask, which allows users to store crypto and interact with decentralized applications (DApps) in a web environment. An important feature of decentralized wallets is that users control their private keys, ensuring anonymity and security. Also, only an email is required to register such a wallet, meaning no verification and no passport data are needed. Perfect!
However, such a wallet has one serious drawback. Access to the wallet is through a seed phrase, a combination of random words in the correct sequence. If this phrase is lost, no one will ever be able to access the wallet. Also, if someone finds the recorded phrase on a piece of paper or in messages (in case of account hacking), they can use this phrase to access the wallet and withdraw all the funds, and no one will help return them. In decentralized wallets, there is no controlling authority, support service, etc. If you, the holder of your keys, have lost them, it is forever.
Another important detail is the interface of decentralized wallets seems less convenient compared to exchanges, and the process of saving and withdrawing funds can be difficult for beginners. However, this is where Obmify comes to the help – you are reading this on its website – a monitoring of exchange services that provides an opportunity to quickly find a safe and profitable exchange for cryptocurrency operations. Thus, users can confidently use decentralized wallets, knowing that they can deposit or withdraw crypto through Obmify.
Cold Wallets
This option provides a high level of security and anonymity, as cold wallets do not have an Internet connection, making them inaccessible to hackers. Offline mode reduces the risks of cyber attacks and other scams.
However, like with decentralized wallets, using cold wallets can be less convenient compared to online exchanges. Conducting transactions from a cold wallet requires certain skills, which can be challenging for unqualified users. And it’s not very clear where to buy or sell crypto with such a wallet.
Here too, Obmify comes to the help, because with us, finding a safe and convenient exchange from a cold wallet becomes easier. Exchange monitoring allows finding the best conditions for exchanging cryptocurrency, ensuring a high level of security and reliability of operations.
Comparison: What’s Better?
Different methods of storing funds have their advantages and disadvantages.
- Banks and popular payment systems seem more familiar and convenient, but they are not suitable for anonymity, even if they are European.
- Cryptocurrency exchanges offer a wide range of possibilities but require verification and are subject to regulation.
- Decentralized wallets provide anonymity but require high attention and responsible storage of private keys.
- Cold wallets offer a high level of security but may be less convenient for use.
The last two win in terms of anonymity, so it makes sense to figure out how to use these methods and finally sleep peacefully.
Obmify, a monitoring exchange service, makes the process of exchanging currency and cryptocurrencies simpler and more reliable for all users, regardless of which method of storing money you choose. We hope this article has helped you understand the different ways to store and withdraw money. Remember, Obmify is always there to help you safely and profitably deposit, withdraw, or exchange any currency.
