Ukraine prohibits local currency Bitcoin purchases

The prolonged crisis in Ukraine has impacted the hryvnia. The National Bank of Ukraine is currently protecting the hryvnia's value.

Ukraine prohibits the purchase of cryptocurrency in local money.

The National Bank of Ukraine stated in a statement that the institution has prohibited cryptocurrency transactions using local money. The interim prohibition is intended to avert significant money outflows from the nation in the aftermath of martial law's introduction.

The announcement said that only foreign currency may be used to acquire "quasi-cash" assets. However, there is a limit to this, since one may only purchase assets worth up to $3300 in foreign currency.

"Quasi-cash transactions include the replenishment of electronic wallets, brokerage or FX accounts, the payment of traveler's checks, and the purchase of virtual assets, among others," the bank stated in a statement.

The central bank imposed these limits in order to avert a major capital flight from the nation. Although quasi-cash transactions are frequently utilized to circumvent financial limitations, they are declared unlawful under martial law.

Despite the restriction, the National Bank of Ukraine highlighted that overseas Ukrainians utilizing their own currency in other nations need worldwide payment networks. As a result, the prohibition will not apply to all hryvnia transactions. PrivatBank, Ukraine's largest commercial bank, has already enforced the restriction.

Ukraine's adoption of cryptocurrency.

Ukraine has grown more receptive to cryptocurrency after the Russian invasion. Volodymyr Zelensky, Ukraine's President, approved a measure setting a legal framework for crypto assets in March.

Throughout the continuing crisis, cryptocurrency has proven more useful to Ukraine. Mykhailo Fedorov, Ukraine's Vice Prime Minister, has asked worldwide cryptocurrency donations. Fedorov also shared official wallet addresses for a variety of cryptocurrencies, including Bitcoin, Ethereum, Dogecoin, and Polygon.

So far, the Ukrainian government has received more than $100 million in cryptocurrency. A portion of the funding has been used to assist the military by purchasing equipment and food supplies. Immediately upon the outbreak of the war, an Ethereum mining farm pledged to halt operations in Russia in solidarity with Ukraine.

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