Ukraine prohibits cryptocurrency Due to War

Why Ukraine prohibits residents from purchasing cryptocurrency using local currency:

In recent months, Ukraine has taken a pro-crypto posture but considering the current circumstances, this is limited.

The nation has officially stated that people would not be able to purchase digital assets using Ukrainian hryvnia.

So those who wish to acquire cryptocurrency will have to do it in foreign currencies. And even then, transactions will be restricted to 100,000 Ukrainian hryvnia every month. This is about $3,400 at current exchange rates.

The National Bank of Ukraine stated in a release that it was attempting to “avoid unproductive capital drain from the nation under martial rule.”

Cryptocurrency holdings are classified as “quasi cash transactions” under existing standards. They fall into the same classification as brokerages, currency accounts, and traveler’s checks.

Ukrainian citizens who have been ordered to leave the country will however be allowed to continue purchasing goods and services. But with local cards, even if their hryvnia is changed into foreign currencies.

All of this is happening while Kyiv authorities fight to keep the hryvnia a stable currency

Exceptional Local Currency Purchase Circumstances

Despite that Ukraine prohibits cryptocurrency purchase with local currency, since Russia’s incursion about two months ago, Ukraine has received crypto contributions totalling tens of millions of dollars.

These monies have been utilized to help people as well as supply heavy weaponry to Ukraine.

President Volodymyr Zelenskyy approved a new legislation legalizing cryptoassets in Ukraine last month.

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