Ukraine to Block Bitcoin Buy in Local Currency While Under Martial Law

Key Takeaways: 

  • The National Bank of Ukraine to make significant changes to improve the foreign exchange market. 
  • Purchase of Bitcoins using native currency will be prohibited. 

Regulators around the world are keeping an eye on the crypto market as they are subject to risks. On Thursday, the National Bank shared the news on its official website about “implementing additional measures to prevent unproductive capital outflows.” 

They have imposed the above rule under martial law, which won’t allow residents to buy Bitcoin using the native currency. Digital assets can only be purchased if they are converted into cash and belong to “quasi cash transactions” which include “replenishment of electronic wallets, brokerage or forex accounts, payment of traveler’s checks, purchase of virtual assets” and like. 

This also can be done only by using their native foreign currency and the limit of purchase is UAH 100,000 per month, which applies to cross-border P2P transactions as well. The National Bank will also allow cross-border P2P transactions using accounts that are registered in the national currency with the banks and the limit of transactions also applies to them. 

The regulator states, “the relevant changes will help improve the foreign exchange market, which is a necessary prerequisite for further easing of restrictions, as well as reducing pressure on Ukraine’s international reserves.” 

Shreya Bhattacharya
Shreya Bhattacharya

A journalist & writer exploring new topics every day!

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