Finance

Ukrainian Central Bank Bans Crypto Purchases Using Local Currency

  • The National Bank of Ukraine said the move was aimed at preventing unproductive capital outflow.
  • Crypto purchases can only be made using foreign currencies, with monthly restrictions of 100,000 Ukrainian hryvnia per individual.

Ukraine’s central bank has banned the use of local currency hryvnia in the purchase of cryptocurrency, according to a press release on Thursday.

According to’ announcement the National Bank of Ukraine made this decision as part of efforts to limit the unproductive outflow of capital in this time of war.

The ban means no cross-border transactions involving citizens, a move taken under martial law in effect since the Russian invasion in February.

Foreign currency only

According to the central bank, those looking to buy cryptocurrencies will only be allowed to do so using foreign currencies. All crypto purchases are now limited to 100,000 UAH (Ukrainian hryvnia) per month (about $3,400 at current rates).

The National Bank has also authorized a similar amount (UAH 100,000 per month) in cross-border P2P transfers as part of support for IDPs from Ukraine. However, transactions must be made from bank accounts that individuals have opened with Ukrainian national currency.

In addition to crypto, the bank has designated the top-up of e-wallets, forex or brokerage accounts and the payment of traveler’s checks as “near-cash transactions”.

The measures are also aimed at strengthening the foreign exchange market, the central bank said. It also aims to reduce pressure on Ukraine’s international reserves “.

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