Major 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 said in comments for crypto media.
Ukrainians unable to trade crypto assets using national currency cards
The world’s largest crypto exchange, Binance, and a major Ukrainian exchange, Kuna, have announced temporary suspensions of operations with Ukrainian hryvnia bank cards. Both trading platforms have confirmed the issues with such trades.
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 the crypto news outlet Forklog. The exchange advised traders to use its peer-to-peer market.
“Currently, fiat channels, namely entry and withdrawal via bank card and other payment services, are temporarily suspended among cryptocurrency exchanges throughout Ukraine,” the trading platform said. . declared in a Telegram article on Thursday, quoted by Bits.media.
“Regarding the hryvnia card and exchange in/out. Yes, it does not work… In short, we are looking for ways to get out of the situation, under threat of shutting down the entire Ukrainian crypto/UAH card market,” said Kuna founder Michael Chobanian. said on his Telegram channel.
On Friday, Chobanian suggested that difficulties with non-cash hryvnia transactions are potentially linked to efforts undertaken 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 type of turnover amounted to 54 billion hryvnia (nearly $1.5 billion) per year. The deputy, Oleksiy Zhmerenetsky, later confirmed that he saw a connection between the two.
Hryvnia restrictions for exchanges likely to affect crypto donations for war-torn Ukraine
Problems with depositing and withdrawing hryvnia on crypto exchanges began in September last year, and since late December the restrictions introduced by the central bank have become stricter, Chobanian explained. He then clarified:
The NBU has banned P2P and A2C transactions for financial companies, and as all crypto exchanges work through them, therefore, everything is gone for them.
Chobanian believes the restrictions are damaging the reputation of Ukraine, a leader in crypto 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 have revealed that since the start of the Russian invasion in late February 2022, Ukraine has raised over $212 million in crypto for defense and humanitarian efforts, including $70 million. million dollars have been received by the government. addresses.
At the end of April, the National Bank of Ukraine imposed a monthly limit on cryptocurrency purchase transactions of 100,000 hryvnia per person ($3,400 then, about $2,700 now). The monetary authority has yet to comment on the implications of its restrictions for the country’s crypto market.
Do you think Ukrainian authorities will lift restrictions on hryvnia transactions with crypto exchanges in the future? Share your thoughts on the subject in the comments section below.
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