- The National Bank of Ukraine said the move was aimed at curbing the unproductive outflow of capital.
- Crypto purchases can only be completed using forex, with a monthly restriction of 100,000 Ukrainian hryvnia per person.
According to a news release on Thursday, Ukraine’s central bank has banned the use of the local currency hryvnia in cryptocurrency purchases.
To announcementThe National Bank of Ukraine took this step as part of efforts to restrict the unproductive outflow of capital during this time of war.
The ban means no cross-border transactions involving civilians, a measure in line with martial law that has been in place since Russia’s invasion in February.
only forex
According to the central bank, those wishing to buy cryptocurrencies will only be allowed to do so using foreign exchange. All crypto purchases are now limited to UAH 100,000 (Ukrainian hryvnia) per month (approximately $3,400 according to current rates).
The National Bank has also allowed a similar amount (UAH 1,000,000 per month) in cross-border P2P transfers as part of supporting IDPs from Ukraine. However, transactions must be made from bank accounts that individuals opened with the Ukrainian national currency.
Along with crypto, the bank has designated electronic wallets, topping up of foreign currency or brokerage accounts and payment of traveler’s checks as ‘quasi-cash transactions’.
The central bank said the measures are also meant to strengthen the foreign exchange market. It is also targetedEasing pressure on Ukraine’s international reserves,