March 7, 2023
By Sharan Kaur Phillora
Ukraine’s central bank has temporarily suspended the use of the hryvnia, the national currency, via banking cards for fiat deposits and withdrawals on crypto exchanges. This move has immediately impacted how investors move funds to and from exchanges, causing inconvenience for users of crypto exchanges like Binance.
Here’s what we know:
Leading crypto exchanges (including Binance) in Ukraine have temporarily ceased accepting hryvnia bank cards. The prohibition originates from limits enforced by the country’s central bank, according to Binance and Kuna in remarks to crypto media.
Binance, the world’s largest crypto exchange, and Kuna, a significant Ukrainian exchange, have announced temporary bans of operations in Ukrainian hryvnia. Both trading platforms verified that such transactions were problematic.
The National Bank of Ukraine (NBU) set limits on the processing of deposits and withdrawals in the national currency, according to Binance officials. The exchange has recommended that traders use its peer-to-peer marketplace.
“Today, fiat channels, primarily input, and withdrawal through bank card and other payment services, are temporarily banned among cryptocurrency exchanges throughout Ukraine. Regarding the hryvnia card and exchange input/output. Indeed, it does not work… We’re exploring solutions out of this issue, which threatens to shut down the Ukrainian crypto/card UAH industry,” Kuna founder Michael Chobanian explained.
The present rumor in the country is that all cards would be banned from being able to carry out crypto payment activities and transactions. A recent publication noted that the country is using this measure to combat several issues related to money laundering using various online platforms.
The National Bank of Ukraine has placed a monthly restriction of 100,000 hryvnia per individual on cryptocurrency purchases at the end of April ($3,400 at the time, roughly $2,700 currently).
The central bank has yet to comment on the implications of its limits for the country’s cryptocurrency industry.
About the author
Sharan Kaur Phillora’s thirst for knowledge has led her to study many different subjects, including NFTs and Blockchain technology – two emerging technologies that will change how we interact with each other in the future. When she isn’t exploring a new idea or concept, she enjoys reading literary masterpieces.