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- The movement of payments in Ukrainian hryvnia to exchanges trading cryptocurrencies, the national fiat currency, was temporarily banned on March 16 by Privatbank, Ukraine’s largest bank by assets.
- Banks are prohibited from performing cross-border money transfers from Ukraine on behalf of clients, according to the notice. The bank went on to say that there are no exceptions when it comes to transferring funds for bitcoin use.
- According to sources, Binance, the world’s largest cryptocurrency exchange, has also confirmed Privatebank’s decision on hryvnia deposits. Consumers should be aware that something similar could happen in the future and should consider using peer-to-peer trading.
On March 16, Privatbank, Ukraine’s largest bank in terms of assets put a temporary ban on the transfer of funds in Ukrainian hryvnia to exchanges trading cryptocurrencies, the national fiat currency.
ForkLog, an online magazine covering crypto news, in a statement, revealed that the reason behind the move is a resolution issued by the National Bank of Ukraine (NBU) on Feb. 24, the same day Russia invaded the country.
However, it is important to note that there is no specific mention of transactions related to crypto, the document introduces stricter rules for bank operations and regulates the operation of the banking system under martial law. For instance, 100,000 hryvnia (approx. $3,400) daily is the limit for cash withdrawals. In addition, the exchange rate for hryvnia is also fixed.
In the announcement, Privatbank explained Banks are banned from processing cross-border transfers of currency from Ukraine on behalf of clients. The bank further stated that the transfer of funds for cryptocurrency use is also no exception.
According to the reports, the leading cryptocurrency exchange in the world Binance has also verified the decision of Private banks in relation to hryvnia deposits. The firm also warns consumers that something like this can happen in the future and recommends they turn to peer-to-peer trading.
In the face of advancing Russian soldiers and mounting humanitarian needs, Ukraine has been taking cryptocurrency donations to pay its defense efforts. Despite President Volodymyr Zelenskyy approving the country’s new “On Virtual Assets” law this week, the prohibition remains in place.
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Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
