The Central Bank of Ukraine has banned crypto transactions via bank cards to prevent the national currency, the hryvnia, from being used in crypto exchanges. In addition, Binance and the main exchange of the country Kuna have confirmed the suspension of crypto transactions through bank cards in Ukrainian hryvnia.
After Ukraine’s decision to temporarily stop using the hryvnia on crypto platforms, it has become a critical issue for Ukrainian citizens to withdraw from or transfer funds to other exchanges.
Meanwhile, the world’s largest crypto exchange, Binance, suggested that the community use peer-to-peer (P2P) trading solutions as an alternative option. It does not require a third party counter, like a bank, to trade with other users. In this way, investors can continue trading smoothly.
Binance Recommends Using P2P Trading Platform
When talking to the community in a post on Telegram channelBinance confirms;
Currently, fiat channels, i.e. input and withdrawal via bank cards and other payment services, are temporarily suspended among cryptocurrency exchanges throughout Ukraine. We recommend using P2P services so that you can continue using Binance comfortably.
Michael Chobanian, the founder of the Kuna exchange, also emphasized the discomfort caused by the regulatory measures. Though he admits that such actions will not affect the Bitcoin ecosystem. He added;
We are looking for a way out of the situation, with the threat of stopping the entire UAH crypto / Ukrainian card market. [translation].
Speaking on the matter, Michael Chobanian noted in a statement that restrictions on non-cash hryvnia transactions appear as part of regulatory efforts to tackle money laundering and tax evasion activities being conducted through online gambling websites.
Illegal Gambling Channels Launder 54 Billion Hryvnia Every Year
The founder of the exchange further cited the claims of a member of the Ukrainian parliament, Oleksiy Zhmerenetsky, who meant that the amount swapped through illegal gambling pa 54 billion in hryvnia every year, equal to about 1.5 billion US dollars.
Considering the fact that cryptocurrency has proven to be useful for Ukraine after the Russian invasion, the decision to ban the use of hryvnia in crypto exchanges is surprising news.
The country has purple over $212 million only in cryptocurrency for defense and humanitarian purposes after February 2022, according to a report published by the blockchain intelligence firm, Elliptic. And $70 million of this charity fund has been sent directly to government-issued addresses.
Related reading: Bybit US Dollar Savings ‘No More,’ Withdrawals Until March 10 Only
Withdrawal and deposit issues related to Hyrvnia initially started in September 2022 due to negative regulatory attitudes. And since last December, the restrictions imposed by the National Bank of Ukraine have become stricter, Chobanian announced.
He continued;
The NBU banned P2P and A2C transactions for financial companies, and since all crypto exchanges work, as a result, everything has disappeared.
Chobanian expressed concern that the newly implemented restrictions will affect medium-sized crypto companies and crypto donations. And it will also damage Ukraine’s global reputation as a leader in emerging industries.
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