A couple of major crypto exchanges in Ukraine have put a pause on their services involving hryvnia credit cards due to restrictions issued by the nation’s central bank. Binance and Kuna have both released statements on the matter to crypto media outlets.
Ukrainians Unable To Exchange Crypto Assets Utilizing Cards With National Currency
The world’s biggest crypto exchange, Binance, and a leading Ukrainian exchange, Kuna, have both announced transactions with Ukrainian hryvnia have been put on hold. Representatives of the National Bank of Ukraine informed crypto media outlet Forklog of the temporary cessation of operations with bank cards.
The restrictions placed on the processing of deposits and withdrawals in national currency result in limited processing. Binance and Kuna have advised traders to use their peer-to-peer marketplace instead.
“Currently, fiat channels, namely input and withdrawal through a bank card and other payment services, are temporarily suspended among cryptocurrency exchanges throughout Ukraine,” a trading platform representative said in a Telegram comment on Thursday as cited by Bits.media.
“Regarding the hryvnia card and input/output to the exchange. Yes, it doesn’t work … In brief, we are looking for ways out of the situation, under the threat of stopping the entire Ukrainian crypto/card UAH market,” Founder of Kuna Michael Chobanian wrote in his Telegram channel.
On Friday, Chobanian proposed that the halt on non-cash transactions in hryvnia may be connected to the efforts of Ukrainian authorities to fight money laundering and tax evasion through online gambling sites.
He was referring to a statement by a Ukrainian lawmaker asserting that the amount of transactions amounts to nearly $1.5 billion per year. The deputy, Oleksiy Zhmerenetsky, later confirmed the relationship.
Hryvnia Restrictions For Exchanges Potentially Affecting Crypto Donations For War-Torn Ukraine
Since September of last year, and especially since the beginning of December, restrictions imposed by the central bank have become more severe, according to Chobanian. He added these details:
The NBU has forbidden P2P transactions and A2C transactions by financial companies. All crypto exchanges operate through them, so everything is now gone.
Chobanian sees the restriction as a reputation risk for Ukraine, which is seen as a leader in crypto adoption in the region. He believes the situation could also affect the activities of small- and medium-sized companies, as well as cryptocurrency donations.
Recent reports from blockchain intelligence firm Chainalysis showed that Ukraine is one of the countries with the most scams. The firm stated that the country is ranked fourth in terms of phishing scams, with about $4.4 million worth of cryptocurrency stolen from users.
Crypto exchanges Binance and Kuna have lately suspended transactions of Ukrainian hryvnia (UAH) on their platforms. This comes amid the Russian Invasion in February, which has raised over $212 million in cryptocurrency to aid defense and humanitarian efforts in Ukraine.
The National Bank of Ukraine (NBU) has also imposed a monthly limit of 100,000 hryvnia ($3,400 then, $2,700 now) for any individual who wants to buy cryptocurrencies. The bank is yet to comment on the implications of its restrictions for the nation’s crypto market.
The companies Elliptic and Chainalysis have been assisting the Ukrainian government in tracking the funds received in crypto. They are also working towards removing the restrictions on hryvnia transactions using crypto exchanges in future.
Do you think Ukrainian Authorities will be able to lift the restrictions on hryvnia transactions using crypto exchanges in future? Share your thoughts in the comments below.
