Crypto Exchanges Binance and Kuna Suspend Ukrainian Hryvnia Card Transactions – Exchange Bitcoin News

Major cryptocurrency exchanges operating in Ukraine have temporarily suspended operations with hryvnia bank cards. The move stems from restrictions imposed by the country’s central bank, Binance and Kuna indicated in comments for crypto media.

Ukrainians cannot trade crypto-assets using cards in national currency

The world’s largest crypto exchange, Binance, and a leading Ukrainian exchange, Kuna, have announced temporary suspensions of operations with bank cards in Ukrainian hryvnia. Both trading platforms confirmed the problems with such transactions.

The limited processing of deposits and withdrawals in the national currency is a result of restrictions imposed by the National Bank of Ukraine (NBU), representatives of Binance told cryptonews Forklog. The exchange has advised traders to use its peer-to-peer marketplace.

“At the moment, fiat channels, namely input and withdrawal through a bank card and other payment services, are temporarily suspended among cryptocurrency exchanges throughout Ukraine,” the trading platform said in a Telegram post on Thursday, cited by Bits.media.

“Regarding the hryvnia card and input/output to the exchange. Yes, it is not working… In short, we are looking for ways out of the situation, under the threat of stopping the entire Ukrainian crypto/short UAH market,” said Kuna founder Michael Chobanian in his Telegram channel.

On Friday, Chobanian suggested that the difficulties with non-cash hryvnia transactions are potentially related to efforts by Ukrainian authorities against money laundering and tax evasion through online gambling sites.

He referred to a recent statement by a Ukrainian lawmaker who claimed that this type of turnover amounts to 54 billion hryvnias (almost $1.5 billion) annually. The deputy, Oleksiy Zhmerenetsky, later confirmed that he sees a connection between the two.

Hryvnia restrictions on exchanges likely to affect crypto donations for war-torn Ukraine

The problems with hryvnia deposits and withdrawals on crypto exchanges started in September last year, and since the end of December, the restrictions imposed by the central bank have become tougher, Chobanian explained. He elaborated further:

The NBU banned P2P and A2C transactions for financial companies, and since all crypto exchanges work through them, everything is gone for them.

Chobanian believes the restrictions damage the reputation of Ukraine, a leader in crypto adoption in the region and beyond. He believes the situation will also affect the business of small and medium-sized businesses as well as cryptocurrency donations.

Recent reports from blockchain intelligence firms Elliptic and Chainalysis revealed that since the start of the Russian invasion in late February 2022, Ukraine has collected over $212 million in crypto for defense and humanitarian efforts, of which $70 million has been received by the government. addresses.

In late April, the National Bank of Ukraine introduced a monthly limit on transactions for the purchase of cryptocurrencies of 100,000 hryvnias per person ($3,400 then, about $2,700 now). The monetary authority has yet to comment on the consequences of its restrictions on the country’s crypto market.

Do you think Ukrainian authorities will lift restrictions on hryvnia transactions with crypto exchanges in the future? Share your thoughts on the topic in the comments section below.

Lubomir Tassev

Lubomir Tassev is a journalist from tech-savvy Eastern Europe who likes Hitchens’ quote: “To be a writer is what I am, rather than what I do.” Besides crypto, blockchain and fintech, international politics and economics are two other sources of inspiration.