The main cryptocurrency exchanges operating in Ukraine have temporarily suspended operations with hryvnia bank cards. The measure stems from restrictions imposed by the country’s central bank, Binance and Kuna indicated in comments to crypto media.
Ukrainians cannot exchange crypto assets using national currency cards
The world’s largest cryptocurrency exchange Binance and Kuna, one of the leading exchanges in Ukraine, have announced temporary suspensions of bank card operations in Ukrainian hryvnias. Both trading platforms confirmed the problems with such transactions.
The limited processing of deposits and withdrawals in the national currency is a result of restrictions imposed by the National Bank of Ukraine (NBU), Binance representatives told crypto news outlet Forklog. The exchange has advised traders to use its peer-to-peer marketplace.
“Currently, fiat channels, that is, input and withdrawal via bank card and other payment services, are temporarily suspended among cryptocurrency exchanges throughout Ukraine,” the trading platform fixed in a Telegram post on Thursday, cited by Bits.media.
“Regarding the hryvnia card and the entry/exit to the exchange. Yes, it does not work… In short, we are looking for ways out of the situation, under the threat of stopping the entire Ukrainian cryptocurrency/UAH card market,” said Kuna founder Michael Chobanian. saying on his Telegram channel.
On Friday, Chobanian suggested that difficulties with non-cash hryvnia transactions are potentially related to efforts by Ukrainian authorities against money laundering and tax evasion through online gambling sites.
He was referring to a recent statement by a Ukrainian lawmaker who claimed that this kind of turnover amounts to 54 billion hryvnia (almost $1.5 billion) a year. The deputy, Oleksiy Zhmerenetsky, later confirmed that he sees a link between the two.
Hryvnia restrictions for exchanges likely to affect cryptocurrency donations for war-torn Ukraine
Problems with depositing and withdrawing hryvnia on cryptocurrency exchanges began in September last year, and since the end of December, the restrictions introduced by the central bank have been tightened, Chobanian explained. He further explained:
The NBU banned P2P and A2C transactions for financial companies, and since all crypto exchanges work through them, it’s all over for them as a result.
Chobanian believes the restrictions damage the reputation of Ukraine, a leader in cryptocurrency adoption in the region and beyond. He believes that the situation will also affect the activities of small and medium-sized businesses, as well as cryptocurrency donations.
Recent reports from blockchain intelligence firms Elliptic and Chainalysis revealed that since the start of the Russian invasion in late February 2022, Ukraine has raised more than $212 million in cryptocurrency for defense and humanitarian efforts, $70 million in which have been received by funds provided by the government. addresses.
At the end of April, the National Bank of Ukraine imposed a monthly limit on transactions for the purchase of cryptocurrencies of 100,000 hryvnia per person ($3,400 at the time, about $2,700 now). The monetary authority has not yet ruled on the consequences of its restrictions for the country’s crypto market.
Do you think that the Ukrainian authorities will lift the restrictions for hryvnia transactions with crypto exchanges in the future? Share your thoughts on the subject in the comments section below.
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