Ukraine Enforces Cryptocurrency Buying Prohibitions

As a preventative step against money flight, Ukraine is putting into action a new legislation. The National Bank of Ukraine (NBU) has currently put limitations on the quantity of cryptocurrency residents may acquire after martial rule.

According to a press release, the central bank’s board of directors devised the fresh regulation last week. The hryvnia, Ukraine’s official currency, will no longer be permitted for the purchase of cryptographic assets by Ukrainian residents (UAH).

In order to buy cryptocurrency, foreign currency is the sole option, and the monthly limit is just 100,000 UAH ($3,300). Global peer-to-peer transactions are likewise subject to the restriction.

Coin purchases are now referred to as “quasi cash” deals as per the release. This puts them on par with e-wallet deposits, currency exchange activities, and other forms of travel-related payments. According to the NBU, restricting these types of transactions prevents “fruitless capital flight” from the nation.

“Foreign currency market improvements are essential for future limitations to be eased, and they will also assist relieve strain on Ukraine’s global reserves.”

International trades have turned out to be more vital as martial rule takes hold, despite these constraints, the central bank acknowledges. To put it another way, tens of millions of people have been compelled to from their homelands. These “fruitless cash flight,” on the other hand, the bank believes it can’t accommodate at this point in time. adding:

“Most of these deals are done to avoid existing limitations on the National Bank, particularly for foreign investment, which is illegal under martial rule in the Philippines. It is thus necessary to view the underlying trades in terms of inefficient capital flight.”

According to a statement from the NBU, the Ukrainian government has now implemented the new legislation. Before the central bank’s pronouncement, other institutions had already implemented similar limits. In mid-March, Ukraine’s biggest commercial bank, PrivatBank, allegedly banned its customers from using UAH to buy Bitcoin.

While martial rule in Ukraine was in effect, the government was working hard to legalize cryptocurrencies. President Volodymyr Zelenskyy of Ukraine passed a bill in March that allowed for the creation of a regulatory framework for crypto assets. The central bank’s move, however, represents an abrupt shift in expectations.

Still, the country is receiving contributions in cryptocurrency and from companies like Binance. Planned exposure is one more weapon in the war against Russia. As part of its investigation into how Russian lawmakers are circumventing sanctions, Ukraine plans to make public the crypto wallets of the country’s most powerful figures.