The National Bank of Ukraine said the move was aimed at preventing unproductive capital outflows. Cryptocurrency purchases can only be done using foreign currency, with a limit of 100,000 Ukrainian hryvnia per person per month.
Ukraine’s central bank has banned the use of the local currency, the hryvnia, when buying cryptocurrencies, according to a Thursday release.
According to the announcement, the move by the National Bank of Ukraine is to limit the outflow of unproductive capital in times of war.
The ban means no cross-border transactions involving citizens, a measure under martial law that has been in place since Russia’s invasion in February.
foreign currency only
According to the central bank, those seeking to buy cryptocurrencies can only do so using foreign currencies. All cryptocurrency purchases are now limited to 100,000 UAH (Ukrainian Hryvnia) per month (about $3,400 at current rates).
As part of its support for internally displaced people in Ukraine, the National Bank also allows cross-border P2P transfers of similar amounts (UAE 100,000 per month). However, the transaction must be made from a bank account opened by the individual in the national currency of Ukraine.
In addition to cryptocurrencies, the bank has designated e-wallets, top-ups of foreign exchange or brokerage accounts, and payments of travelers’ checks as “quasi-cash transactions.”
The central bank said the measures were also aimed at boosting foreign exchange markets. It also aims to “relieve pressure on Ukraine’s international reserves”.