The Binance cryptocurrency exchange recommends the use of peer-to-peer (P2P) services following the restrictions imposed by the National Bank of Ukraine (NBU).
Ukraine temporarily suspended the hryvnia, its national currency, through bank cards for fiat deposits and withdrawals on cryptocurrency exchanges.
Binance recommends using P2P services
Binance and the main Ukrainian exchange Kuna have announced temporary suspensions of bank card operations in Ukrainian hryvnia. Both platforms reported problems with such transactions.
Binance advised traders to use its P2P marketplace in a Telegram notice on March 2.
“Currently, fiat channels, that is, input and withdrawal via bank card and other payment services, are temporarily suspended among cryptocurrency exchanges throughout Ukraine.”
Source: Binance
Users can trade crypto and fiat directly with other Binance users on Binance P2P without the need for an intermediary such as banks.
Kuna founder Michael Chobanian also took to his Telegram channel to inform users that his hryvnia card entry and exit services have been suspended.
“In short, we are looking for ways out of the situation, under the threat of stopping the entire UAH cryptocurrency/card market of Ukraine.”
Michael Chobanian, Kuna founder
Chobanian said on Friday that challenges with non-cash hryvnia transactions could be related to efforts by Ukrainian authorities against money laundering and tax evasion through online gambling sites.
Ukraine Restrictions Could Affect Crypto Donations
Ukraine’s anti-crypto decision is surprising considering the country has received more than $70 million in crypto donations since the start of the Russo-Ukrainian war.
Difficulties in depositing and withdrawing hryvnia on cryptocurrency exchanges began in September 2022. In December 2022, the central bank of Ukraine introduced further restrictions on cryptocurrencies.
According to Chobanian, the restrictions damage Ukraine’s reputation as a leader in cryptocurrency adoption in the region. Furthermore, he believes that this suspension will affect cryptocurrency donations to the war-torn country.