According to a news release issued by Ukraine’s central bank on Thursday, the use of the local currency, hryvnia, in the purchase of cryptocurrencies has been prohibited.
The action was taken as part of measures by the National Bank of Ukraine to limit unproductive money outflows during this time of war, according to the notice. The ban means no citizen-to-citizen cross-border transactions, a step implemented in accordance with martial law, which has been in effect since Russia’s invasion in February.
Using foreign currency for crypto purchases
Those wishing to purchase cryptocurrencies will be able to do so only using foreign cash, according to the central bank. All cryptocurrency purchases are now limited to UAH 100,000 (Ukrainian hryvnia) per month (about $3,400 at current rates).
As part of its help for IDPs from Ukraine, the National Bank has permitted a similar amount (UAH 100,000 per month) in cross-border P2P transfers. Individuals must, however, make transactions from bank accounts opened in Ukrainian national currency.
“Quasi cash transactions” include the topping up of electronic wallets, FX or brokerage accounts, and the payment of traveler’s checks, in addition to crypto. The measures are also intended to support the foreign exchange market, according to the central bank. Another goal is to reduce the strain on Ukraine’s international reserves.
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